Cartels are difficult to maintain because
a. the monopoly output is very difficult to determine
b. the number of firms is always large.
c. costs to the firms in a cartel are continually rising.
d. each firm has an incentive to deviate from its agreed output level.
d
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Economists assume that households and firms share two important characteristics. One of these characteristics is that
A) they smooth spending during recessions and expansions. B) they act rationally to meet their objectives. C) they only consider the present when making decisions. D) the growth rate in spending by each is equally volatile.
An improvement in productivity will usually increase profits
a. True b. False Indicate whether the statement is true or false
Macroeconomics deals with ________ while microeconomics deals with ________.
A. choices of rich people; choices of poor people B. choices important to people; choices not important to people C. choices that involve money; choices that does not involve money D. economywide choices; choices of individuals
Which of the following can be a barrier to entry, closing a market to new firms?
A) an elastic industry demand curve B) control of a vital resource by one producer C) diseconomies of scale D) ease of obtaining capital financing