If firms make agreements that reduce the amount of competition in a market,
a. the market price usually falls
b. they would face penalties under antitrust legislation
c. mergers will result
d. there must be diseconomies of scale in the industry
e. they would face penalties under contract law
B
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Which of the following statements is positive?
A. Large budget surpluses should be avoided. B. A tax cut that benefits high-income households is acceptable. C. Higher taxes are needed to support education. D. Tax increases tend to discourage saving.
Typically, a country's population is divided into how many income groups to find a Lorenz Curve?
a. 1 or 2. b. 5 or 10. c. 10 or 20. d. 25 or 50. e. 100.
The existence of profit in a perfectly competitive industry means that:
a. new producers will seek to enter the industry. b. consumers will switch to substitute goods. c. each producer is charging a different price. d. the current price exceeds marginal cost.
For this question, assume that exchange rates flexible and that the exchange rate expected to occur in one year is not constant. Suppose that individuals now expect that the domestic central bank will pursue expansionary monetary policy in one year. This expected future monetary expansion will cause which of the following to occur?
A) The current nominal exchange rate will decrease. B) The current nominal exchange rate will increase. C) The current nominal exchange rate will not change. D) The effects on the current nominal exchange rate are ambiguous.