Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits.
b. the cartel price is the competitive price.
c. each member's output quota is too high.
d. each member's MR is not equal to the cartel's MC.
e. the industry profit would be higher under competitive conditions.
d
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If the U.S. Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n)
A. supply-side fiscal policy. B. contractionary fiscal policy. C. expansionary fiscal policy. D. nondiscretionary fiscal policy.
Even if better programs become available, Microsoft's Windows software may retain market dominance because of
a. network externalities. b. its user-friendliness. c. switching costs. d. both a & c.
The standard of living is often measured by:
a) Real GDP per capita b) Real GDP c) Real GDP * population d) Real GDP plus depreciation
If government removes two people from a prisoner's dilemma setting (and, in the process, requires that the two persons pay taxes for the service that government provides), it holds that on net
A) each of the two persons is better off. B) each of the two persons is worse off. C) one person is better off and the other person is worse off. D) a, b, or c E) none of the above