When firms in an illegal market form a cartel, _____
a. they are able to supply higher quality products
b. it becomes more difficult for police to detect their activities
c. they are able to increase profits by behaving as a monopolist
d. they face a deadweight loss
e. they rely on goodwill to ensure the stability of the cartel
c
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Economists agree that the CPI
A) is a near perfect measure of the cost of living. B) has no relation to the cost of living. C) is a possibly biased measure of the cost of living. D) almost always shows the cost of living rising less rapidly than is the case in reality. E) overstates inflation by about 4.1 percentage points a year.
What kind of game is shown in Scenario 13.11?
A) Axelrod's Paradox B) Stackelberg Match C) Prisoners' Dilemma D) Cournot's Duopoly Game E) It is not possible to tell what kind of game it is because the strategies have not been identified.
If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the cost by 5.5million and increasing the probability of a launch to 50%. Is it worth for the firm to invest the $500,000 in tweaks?
a. No, because it decreases the total expected value b. Yes, because it increases expected value c. No, because it increases risk d. Yes, because tweaking is good
Which of the following represents an illegal control of prices?
A. Colluding B. Following the leader without explicit agreements to do so C. Following the price determined by an analysis of supply and demand D. Accepting a government mandated price without contesting it