Which of the following is the best example of tacit collusion?
A) The formation of a cartel.
B) Price leadership.
C) Predatory pricing.
D) Noncooperative pricing behavior.
B
You might also like to view...
Betsy's utility depending from her consumption of coffee is shown in the table above. Betsy's marginal utility from the 3rd cup of coffee per day is
A) 30. B) 85. C) 90. D) 10.
Assume a group of firms has formed a cartel and the cartel is in engaged in joint profit maximization. As such, each firm, acting in its own interests, has an incentive to expand production up to the point at which:
A) its marginal cost equals the marginal revenue earned by the cartel. B) its marginal cost equals the cartel-determined price of the product being sold. C) its marginal revenue equals the cartel's marginal costs of production. D) its marginal cost equals the cartel-determined marginal revenue from the good being sold.
The concept of marginal productivity is applicable to
a. all of the following b. capital c. entrepreneurial talent d. land e. labor
If aggregate expenditures (AE) are less than aggregate output (real GDP), then firms will:
a. have unplanned inventory accumulation. b. earn above-average profits. c. expand production and hire more workers. d. be raising their prices.