Cartels are thought to be inherently unstable because:
a. the costs of enforcing cartel agreements are very low
b. each cartel member can privately profit from increasing production beyond agreed-upon levels.
c. customers force cartel members to increase production and reduce prices.
d. cartel agreements are legally binding and can be upheld in court.
b
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Acme is a perfectly competitive firm. It has the cost schedules given in the above table and has a fixed cost of $12.00. The price of Acme's product is $4.00
What is Acme's most profitable amount of output? What is Acme's total economic profit or loss?
As the housing bubble collapsed, the combination of increasing interest rates and pessimism about future economic prospects:
A. increased both consumption and investment spending. B. decreased consumption and increased investment spending. C. decreased both consumption and investment spending. D. increased consumption and decreased investment spending.
The slope of the aggregate demand curve illustrates that real GDP demanded will increase when
a. the price level rises. b. the price level falls. c. real income rises. d. real income falls.
Isabella is on a temporary layoff from her factory job. If Isabella participates in the BLS survey, she will be classified as
a. unemployed and in the labor force. b. unemployed and out of the labor force. c. employed and in the labor force. d. employed and out of the labor force.