Self-interest makes cartels unstable for all of the following reasons except which one?
A) Each firm has an incentive to be the whistle-blower.
B) Each firm has the incentive to produce more than the agreed upon quantity.
C) Each firm has the incentive to lower their costs by producing less than the agreed upon quantity.
D) Each firm has an incentive to be the first to report and confess cartel behavior.
C) Each firm has the incentive to lower their costs by producing less than the agreed upon quantity.
You might also like to view...
Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the
A) demand for hot dogs increases. B) demand for hot dogs decreases. C) quantity of hot dogs demanded increases. D) quantity of hot dogs demanded decreases. E) More information is needed to determine if the demand increases or decreases.
If the Fed conducts open-market sales, the money supply
a. increases and aggregate demand shifts right. b. increases and aggregate demand shifts left. c. decreases and aggregate demand shifts right. d. decreases and aggregate demand shifts left.
Explain why China and India are considered disruptive to the world's status quo
What will be an ideal response?
Redbox rents DVDs for $1 per day via self-service kiosks located across the United States. In 2007, each kiosk averaged about 50 rentals per day. Suppose Redbox increases their daily price to $1.50
What is the price elasticity of demand if rentals decrease by 20 per day? A) 1.25 B) 1.33 C) 1 D) 0.8