When firms cooperate with each other rather than compete:
A. consumers will end up better off.
B. the firms will end up better off.
C. both consumers and firms end up better off.
D. they will agree to set low prices to help each other out.
Answer: B
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Liabilities are:
A. saving minus investment. B. anything of value one owns. C. the debts one owes. D. current income minus spending on current needs.
With technological developments, more resources are discovered which change production sets for countries and make world trade more and more beneficial
Indicate whether the statement is true or false
Even-handed enforcement of contracts fuels economic prosperity because it
a. permits individuals to invade or infringe on the property rights of others. b. increases transaction costs. c. increases market uncertainty and the probability of contract violations. d. promotes gains from trade by keeping transaction costs low.
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. If the original balance sheet was for the commercial banking system, rather than a single bank, loans and deposits could have been expanded by a maximum of approximately:
A. $120,000. B. $213,333. C. $415,373. D. $333,500.