If firms in a duopoly can successfully collude
A) each firm can earn an economic profit.
B) the industry, that is, both firms taken together, can earn the maximum economic profit.
C) the firms achieve a cooperative equilibrium.
D) All of the above answers are true.
D
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In the above table, saving is positive when real disposable income is greater than
A) $300. B) $100. C) zero. D) $500.
An increase in wealth ________ saving supply, and the supply of loanable funds curve ________
A) does not change; does not shift B) decreases; shifts rightward C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward
Argentina's financial crisis was due to
A) poor supervision of the banking system. B) a lending boom prior to the crisis. C) fiscal imbalances. D) lack of expertise in screening and monitoring borrowers at banking institutions.
??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (b) of Exhibit 16A-2, the economy is initially in short-run equilibrium at real GDP level Y1 and price level P2. If the federal government or Fed decides to intervene, it would most likely:
A. ?decrease taxes. B. ?increase the money supply. C. increase the level of government spending for goods and services.? D. ?decrease the level of government spending for goods and services.