Relative to explicit price fixing, with implicit price fixing:
A. firms will find it more difficult to figure out why the price leader has set the price that it has.
B. the reasons for the price leader's pricing strategy will be more clear and less ambiguous.
C. firms face a higher risk of prosecution for antitrust violations.
D. consumers will pay higher prices.
Answer: A
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As a price change persists over a long period of time, we should expect the demand elasticity to fall.
Answer the following statement true (T) or false (F)
Households act as demanders when they demand
a. that corporate executives and government officials be held accountable for their actions b. dividends from the stocks they hold c. interest and capital gains from the bonds they hold d. goods and services from firms and the government e. payment for the goods and services they sell to firms and governments
A worker's contribution to a firm's revenue is measured directly by the worker's
a. marginal product. b. value of marginal product. c. marginal product multiplied by the worker's wage. d. value of marginal product multiplied by the output price.
The top four firms in the industry have 10 percent, 8 percent, 8 percent, and 6 percent of the market. The Herfindahl index of this market is closest to which of the following?
A. 66 B. 264 C. 8 D. 32