Implicit collusion occurs when oligopolistic firms negotiate a common price.
Answer the following statement true (T) or false (F)
False
Implicit collusion involves no explicit communication between firms.
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An increase in the price of inputs will cause the supply curve for a product to shift to the right
Indicate whether the statement is true or false
The marginal decision rule will be replaced with the net present value rule when:
a. costs and benefits occur at approximately the same time b. costs are incurred immediately c. benefits are incurred immediately d. the marginal decision rule is never replaced
The precautionary demand for holding money is when people hold money:
a. instead of near money. b. to transact purchases they expect to make. c. as insurance against unexpected needs. d. to speculate in the stock market. e. to take advantage of changes in interest rates.
If the cross-elasticity of goods X and Y is negative, then the sales of X move:
A. in the opposite direction as the price of Y, and X and Y are substitute goods. B. in the opposite direction as the price of Y, and X and Y are complementary goods. C. in the same direction as the price of Y, and X and Y are complementary goods. D. in the same direction as the price of Y, and X and Y are substitute goods.