Tacit collusion
A. is more likely to effectively raise prices in the industry when demand is elastic.
B. occurs when firms engage in formal agreements to reduce output and increase prices in their industry.
C. is more likely to be successful in increasing industry profits when there are a few, similar firms in the industry.
D. is legal under the U.S. antitrust laws.
Answer: C
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Induced expenditures are defined as that part of
A) autonomous expenditure that responds to changes in real GDP. B) real GDP that does not respond to changes in aggregate expenditure. C) aggregate expenditure that responds to changes in real GDP. D) aggregate expenditure that does not respond to changes in real GDP. E) autonomous expenditure that does not respond to changes in real GDP.
If a nation is a net importer it means that the:
A) nation only imports goods and services and does not export any good. B) nation only imports those goods in which it has an absolute disadvantage. C) nation's imports are worth more than exports over a given period of time. D) nation prohibits the import of goods and services that can be produced domestically.
Government officials facing the challenge of an election will tend to make decisions
A) acceptable to a majority whether or not the majority is informed on the issues. B) expressing the public interest. C) favoring the long run interests of the majority. D) that reflect a high rate of time discount.
The term "business cycle" most closely refers to the
A) fluctuating profits of firms. B) fiscal year. C) accounting period used by firms. D) alternating periods of expansions and recessions.