The cartel consisting of Firm A and Firm B can become unstable if:
a. Firm A manages to enhance the quality of its product.
b. both the firm sell homogeneous products
c. Firm B decides to decrease its output.
d. both firms decide to decrease industry output.
a
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The combined GDP of developing countries constitutes approximately
a. 5 percent of global GDP. b. 20 percent of global GDP. c. 30 percent of global GDP. d. 40 percent of global GDP.
Which of the following shifts aggregate demand right?
a. both a decrease in the price level and the implementation of an investment tax credit b. a decrease in the price level but not the implementation of an investment tax credit c. the implementation of an investment tax credit but not a decrease in the price level d. neither a decrease in the price level nor the implementation of an investment tax credit
The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and aggregate demand to get back to an output level the government is comfortable with. B. decrease government spending in an attempt to get the private economy back on track. C. increase spending and shift aggregate demand to the left in an effort to reach full employment output. D. increase spending and shift aggregate demand to the right in an effort to reach full employment output.
If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130, then the marginal cost of the tenth DVD is
A. $4. B. $13. C. $14. D. $130.