In which of the following cartels is total cartel profit likely to be the highest?
A) a cartel made up of equal sized firms each producing different quantities of a differentiated product
B) a cartel made up of firms of various sizes each producing different quantities of a homogeneous product
C) a cartel made up of firms of various sizes each producing the same quantity of a differentiated product
D) a cartel made up of identical firms each producing the same quantity of a homogeneous product
Answer: D
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One reason the Fed tolerates ongoing inflation is because it
a. believes that the CPI understates the actual inflation rate b. believes that the CPI overstates the actual inflation rate c. accepts the idea that a zero inflation rate would make labor markets work more smoothly d. wants to focus more on price stability than on full employment e. is uncertain about the long-run stability of the Phillips curve
That is capital deepening? How does it affect labor productivity?
Agricultural prices fell during each of these periods EXCEPT
A. 1865-1900. B. 1900-1919. C. 1929-1933. D. There is no exception. Agricultural prices fell in all these time periods.
The interest rate that banks use as a benchmark rate for interest rates on a wide range of loans to businesses and individuals is the:
a. Federal funds rate b. Real interest rate c. Discount rate d. Prime interest rate