Why do firms in oligopoly face a temptation to collude?
What will be an ideal response?
Firms in oligopoly face the temptation to collude because if they can successfully collude, they can boost their economic profit.
You might also like to view...
A technological advance ________ potential GDP, ________ aggregate supply, and shifts the aggregate supply curve ________
A) decreases; increases; rightward B) decreases; decreases; leftward C) increases; decreases; leftward D) increases; increases; rightward E) increases; increases; leftward
You invest an amount today for four years that pays 6% annually. The bank compounds annually. At the end of the four years you will have $150. What amount must you invest today?
A) $148.81 B) $138.81 C) $128.81 D) $118.81
According to the definitions of national saving and private saving, if Y, C, and G remained the same, an increase in taxes would
a. raise both national saving and private saving. b. raise national saving and reduce private saving. c. leave national saving and private saving unchanged. d. leave national saving unchanged and reduce private saving.
Because expected inflation is typically positive, we know that
A) the nominal interest rate is generally less than the real interest rate. B) the real interest rate is generally less than the nominal interest rate. C) the nominal and real interest rates are generally equal. D) the real interest rate is approximately equal to zero.