How does a cartel differ from an oligopolistic industry?
A. Oligopolistic industries cannot make economic profit.
B. Cartels reduce uncertainty to maximize profits.
C. Cartels are legal while oligopolies are illegal.
D. Oligopolies face large amounts of competition while cartels do not.
Answer: B
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Which statement is false?
A. President Eisenhower presided over three recessions. B. At the close of the 20th century the unemployment rate was below 5 percent. C. The United States' longest economic expansion was for six years during the Reagan Administration. D. None of the choices are false.
By lowering the legal reserve requirement, the Federal Reserve System forces banks to hold repaid loans as required reserves instead of lending the funds again
Indicate whether the statement is true or false
Profit-maximizing firms want to maximize the difference between
A) total revenue and marginal cost. B) total revenue and total cost. C) marginal revenue and marginal cost. D) marginal revenue and average cost.
Refer to the above graph. At output level H, the area:
A. 0CGH represents the firm's variable cost of production. B. 0CGH represents the firm's fixed costs of production. C. ACGE represents the firm's economic profit. D. 0AEH represents the firm's economic profit.