Firms engage in explicit collusion when:
A. they predict what the other will do and attempt to undercut them.
B. they collude without communicating, sustaining a price above the noncooperative price that would arise in a single competitive interaction.
C. they communicate to reach an agreement about the prices they will charge.
D. they communicate what type of good they will produce.
C. they communicate to reach an agreement about the prices they will charge.
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A voluntary export restraint is an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country
Indicate whether the statement is true or false
The most preferred solution for reducing cyclical unemployment is to: a. minimize recessions
b. provide unemployment benefits. c. provide food stamps. d. implement zoning laws.
Which of the following are steps in ABC classification (i.e., applying Pareto's Law)?
a. Classify companies by sales b. Provide stewardship for each customer c. Modify classifications based on strategic issues d. Restructure companies based on size e. Both A and C
The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that
A) monopolies don't have a supply curve. B) monopolies don't have a demand curve. C) monopolies have the same supply curve as perfectly competitive firms. D) monopolies maximize profit.