A cartel:
a. is a group of firms formally agreeing to control the price and the output of a product.
b. has as its primary goal to reap monopoly profits by replacing competition with cooperation.
c. is illegal in the United States, but not in other nations.
d. all of these.
d
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A movement along the aggregate production function is the result of a change in
A) the quantity of labor. B) technology. C) capital. D) interest rates.
The market structure of home video gaming systems is best characterized by monopolistic competition. Quasar Entertainment is one of the producers in this market. The inverse demand for Quasar systems is:
P = 500 - 9.75Q Quasar's cost function is: C(Q) = 0.25Q2 + 6. Determine Quasar's profit maximizing level of output and the price charged to customers. Is the market in a long-run equilibrium?
What type of good is clean air?
A) Rival and exclusive B) Nonrival and exclusive C) Rival and nonexclusive D) Nonrival and nonexclusive
In an unbalanced oligopoly,
a. one firm has significantly greater market power than any other in the industry b. only one firm exists in the industry c. the industry is rapidly converging into a monopolistically competitive industry d. all firms have near-equal market share e. the four-firm concentration ratio exceeds 100 percent