In an oligopoly, producers' agreements to restrict output tend to be unstable because each firm has an incentive to:
A. Produce more than its output quota
B. Lower both its price and its output
C. Raise its price above the cooperative price
D. Establish competitive price and output levels
A. Produce more than its output quota
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Items that are purchased by individuals for their own enjoyment are called
A) consumption goods and services. B) capital goods. C) government goods and services. D) exports of goods and services. E) private goods.
If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?
A) Demand decreases and becomes less elastic. B) Demand increases and becomes less elastic. C) Demand increases and becomes more elastic. D) Demand decreases and becomes more elastic.
Which of the following is not an example of foreign aid?
a. U.S. discount department stores purchasing toys from Chinese manufacturers b. The International Monetary Fund extending loans to countries that have trouble with their balance of payments c. The World Bank providing loans and grants to support health and education programs d. The U.S. government paying to build an electricity plant in Albania e. The Australian government paying to repair highways in Tonga
What are the main features of the Celler-Kefauver Act?
What will be an ideal response?