Cartel members have an incentive to cheat on the cartel because:
A. the industry profit would be higher under competitive conditions.
B. the cartel price is the competitive price.
C. each member's output quota is too high.
D. each member's MR is not equal to the cartel's MC.
Answer: D
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Stock is
A) bought in a secondary market and sold in a primary market. B) bought in a secondary market and sold back to the firm. C) initially purchased in a primary market and sold in a secondary market. D) none of these choices.
Total revenue minus both explicit and implicit costs
a. gross earnings. b. marginal earnings. c. profit. d. net worth.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Which of the following is NOT a feature of Sweezy oligopoly?
A. Each firm believes that rivals will cut their prices in response to a price reduction, but will not raise their prices in response to a price increase. B. The firms produce homogeneous products. C. There are few firms in the market serving many consumers. D. Barriers to entry exist.