Which of the following statements is FALSE?
A) Cartels only form among members of an oligopoly.
B) A cartel might form if members believe they can increase profits by coordinating activity.
C) Members of a cartel produce less output than that produced in a competitive market.
D) Cartel members often have an incentive to cheat.
A
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Aggregate demand is the relationship between the quantity of real GDP demanded and the ________
A) price level B) money wage rate C) real wage rate D) nominal GDP demanded
The fundamental objective of monetary policy is to assist the economy in achieving:
a. A rapid pace of economic growth b. A money supply which is based on the gold standard c. A balanced-budget consistent with full-employment d. A full-employment, noninflationary level of total output
The opportunity cost of more capital goods today is
A) fewer capital goods in the future. B) fewer consumer goods in the future. C) fewer consumer goods today. D) more unemployed resources in the future.
Since a monopolistically competitive firm faces a ____ demand curve, it will always operate ____ in long-run equilibrium
a. perfectly elastic; with excess capacity b. downward-sloping; with excess capacity c. downward-sloping; at an economically efficient scale d. perfectly inelastic; at an economically efficient scale