The likelihood of a cartel being successful is greater when:
A. firms are producing a differentiated, rather than a homogeneous, product.
B. cost and demand curves of various participants are very similar.
C. the number of firms involved is relatively large.
D. the economy is in the recession phase of the business cycle.
Answer: B
You might also like to view...
Voluntary export restraints and quotas are essentially identical in their welfare effects
Indicate whether the statement is true or false
Everything else held constant, an increase in government spending will cause
A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease.
In order to maximize profits, a firm should decrease output whenever total cost exceeds total revenue
a. True b. False
How many workers would the firm hire if the wage rate were $10?
