What are the main characteristics that make it more likely for a cartel to enforce agreements among participating members?
What will be an ideal response?
A cartel is more effective in enforcing agreements if there are a small number of firms, relatively homogeneous products, easily observable prices, and little variation in prices.
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The imposition of a binding price ceiling on a market causes quantity demanded to be a. greater than quantity supplied. b. less than quantity supplied
c. equal to quantity supplied. d. Both (a) and (b) are possible.
According to the No Marginal Improvement Principle, if X* is the best choice, then:
A. MB must be no greater than MC at X* or else a small increase in the activity would increase net benefits. B. MB must be no greater than MC at X* or else a small decrease in the activity would increase net benefits. C. MB must be no less than MC at X* or else a small increase in the activity would increase net benefits. D. the difference between MB and MC must be as great as possible.
There are currently N identical firms in a market. If it is a perfectly competitive market, the short-run market supply curve at any given price is
A) N times the supply of an individual firm. B) N - 1 times the supply of an individual firm. C) N plus the supply of an individual firm. D) It cannot be determined from the information provided.
In a figure, the consumer surplus is equal to the area ________ the ________ curve and ________ the price
A) above; demand; above B) below; supply; below C) below; demand; below D) below; demand; above E) above; supply; below