Explain why gasoline stations across the street from each other with large signs displaying their prices may "legally" jointly set monopoly prices
What will be an ideal response?
A gasoline station posts its prices on a large sign. The other station can view the prices. The two stations may be able to set monopoly prices without an explicit agreement. These firms may tacitly collude.
You might also like to view...
"Education in elementary and high schools has external benefits because families who have a lot of children do not pay any more than families without children." Is this statement correct or incorrect? Explain your answer
What will be an ideal response?
Those who think that a popular investment is necessarily a good investment often find themselves earning low returns.
Answer the following statement true (T) or false (F)
The main shortcoming of the market, in the view of many,
a. lies in the arena of justice and injustice. b. lies in the area of consumer goods production. c. is its inability to stimulate the creation of new products. d. is its drag on growth in productivity.
If demand decreases while supply increases, then the equilibrium price
A. may increase, decrease, or stay the same. B. always increases. C. never changes. D. always decreases.