Katz, Goborg, and Rimmet are oligopolists in the tractor industry. They face intense pressure from foreign tractor imports. Which of the following actions could be considered collusive?
a. Goborg and Rimmet collaborate on a pricing strategy to boost their sales.
b. Katz hires lobbyists to convince the government to raise tariffs on imported tractors.
c. Rimmet and Goborg each lower their prices after Katz lowers its prices.
d. Goborg deliberately lowers its prices to try to steal customers from Rimmet and Katz.
a. Goborg and Rimmet collaborate on a pricing strategy to boost their sales.
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An individual may borrow a certain sum of money from any of the three banks in his town
Bank 1 offers him loans at an annual rate of 5%, Bank 2 offers him loans at an annual rate of 3% per year, and Bank 3 offers him a loan at an annual rate of interest of 10%. A rational individual will: A) borrow from Bank 2. B) borrow from Bank 1. C) borrow from Bank 3. D) be indifferent about borrowing from any of the three banks.
You put $150 in the bank two years ago and forgot about it. The bank sends you a notice that you now have $169.34 in your account. What interest rate did you earn?
a. 5.50 percent b. 5.65 percent c. 6.25 percent d. 7.05 percent
If the public correctly perceives that the central bank will reduce inflation, then
A. the short-run Phillips curve shifts right, and the sacrifice ratio will be lower. D. the short-run Phillips curve shifts left, and the sacrifice ratio will be higher. C. the short-run Phillips curve shifts right, and the sacrifice ratio will be higher. D. the short-run Phillips curve shifts left, and the sacrifice ratio will be lower.
The key variable in determining changes in a country's standard of living is the:
A. interest rate. B. long-run rate of economic growth. C. unemployment rate. D. inflation rate.