Cartels in the United States are
a. legal if price is competitively arrived at
b. legal if all firms in the industry agree to the terms of the cartel
c. legal if all conditions of the cartel are made public
d. legal if economic profit earned by the cartel is evenly distributed among the cartel members
e. illegal
E
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If interest rates rise in the United States, what effect does this have on the value of the U.S. dollar?
What will be an ideal response?
If nominal GDP increased from $4 billion to $5 billion while real GDP increased from $3 billion to $4 billion, it follows that:
A. real output rose and price level fell. B. the price level and real output increased at the same rate. C. the price level increased at a faster rate than real output. D. the price level rose by 25 percent.
Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth?
A. A congressional proposal to incur a federal surplus to be used for the retirement of public debt. B. Reductions in agricultural subsidies and veterans' benefits. C. Postponement of a highway construction program. D. Reductions in federal tax rates on personal and corporate income.
Refer to the table below. The market price of the product in the short run is:
Use the table below to answer the question for a purely competitive firm.
A. $40
B. $80
C. $120
D. $160