If the firms in a market reach an agreement about pricing and output shares, we would call this
A. a cartel.
B. a dominant strategy.
C. a Nash equilibrium.
D. a duopoly.
Answer: A
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Which of the following is true of the law of supply?
a. The law of supply is the sole determinant of market prices. b. The law of supply states that as the price of a good rises, the quantity supplied rises. c. The law of supply holds good only in the long-run. d. The law of supply is valid only in a market system of allocation. e. The law of supply asserts that as the cost of producing a good rises, the quantity supplied rises.
A country's level of productivity determines its
a. productivity growth rate. b. rate of population growth. c. current standard of living. d. future income potential.
Explain how a “conservative” and a “liberal” might differ in the types of policies they advocate to counteract a recessionary gap.
What will be an ideal response?
Government intervention to reduce the level of pollution is prompted by the existence of
A. Negative externalities. B. Government failure. C. A monopoly. D. An inequitable distribution of income.