An arrangement between firms whereby decision-making is controlled by a board of trustees is known as:
A. a trust.
B. a compact between industry and government.
C. predatory pricing.
D. a merger.
Answer: A
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What type of economic policy did Mexico follow from the end of World War II until the 1980s? Describe the three-stage strategy that supporters of this policy emphasized. What was the outcome of these policies for Mexico's manufacturing sector?
What will be an ideal response?
Assume there is an improvement in technology that increases the marginal product of each unit of labor. This would have the effect of:
A) reducing the average total cost, average variable cost, and marginal cost of production. B) increasing the average total cost, average variable cost, and marginal cost of production. C) reducing the average variable cost and marginal cost of production, but average total cost would be unchanged. D) reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.
When the capital (a fixed input) changes
A) short-run marginal costs rise. B) short-run average total costs fall but do not shift. C) labor inputs decline. D) the short-run average total cost curve shifts.
In a free market economy,
A. problems with externalities can never be solved. B. public goods will be efficiently provided by the private sector. C. detrimental externalities are rare. D. externalities can be solved by policy makers using market methods.