Which one of the following factors reduces the likelihood that a cartel agreement will lead to higher producer profit?
a. significant barriers to entry into the cartelized market
b. the development of substitutes for the good produced by the cartel
c. government restrictions that limit competition from new rivals
d. a small number of sellers involved in the cartel agreement
B
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According to the figure, MiiTunes:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. has a dominant strategy to charge low prices.
B. does not have a dominant strategy.
C. has a dominant strategy to charge high prices.
D. has more than one dominant strategy.
Which of the following is TRUE of trends in the number of new U.S. patents?
A. The number of new patents granted each year has remained unchanged since the early 1970s. B. The number of new patents granted each year declined by more than 50 percent after 2001. C. There was a surge in new patents in the latter part of the 1990s. D. There was a steady increase in new patents throughout the 1970s.
The table above gives the demand for loanable funds and private supply of loanable funds schedules
a. What is the equilibrium real interest rate and quantity of loanable funds? b. Suppose that the government has a budget surplus of $2.5 billion. If there is no Ricardo-Barro effect, what is the equilibrium real interest rate and quantity of loanable funds?
Negative externalities: Usually caused by __________________________.
Fill in the blank(s) with the appropriate word(s).