All else constant, a cartel agreement will become more difficult to enforce as the number of firms competing the market increases and the members of the cartel produce a differentiated product
Indicate whether the statement is true or false
TRUE
You might also like to view...
Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii
B. i and ii
C. Only iii
D. i and iii
E. Only i
A major problem with using a tradable emission allowances system to control pollution is
A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) that it does not eliminate pollution completely. D) it discourages firms from implementing cost-effective pollution control technology.
Refer to Figure 4-18. As a result of the tax, is there a loss in producer surplus?
A) No, because the consumer pays the tax. B) Yes, because producers are not selling as many units now. C) No, because the market reaches a new equilibrium D) No, because producers are able to raise the price to cover their tax burden.
Which of the following is not a problem with a public good?
a. An incentive to free-ride b. A public good is often underconsumed c. An absence of private property rights d. An inability to limit consumption to those who purchase the good e. A public good is usually underproduced