Collusion among oligopolistic firms
A. is common in world markets, but does not happen in the U.S.
B. becomes easier during a recession when sales are falling.
C. becomes more difficult if the firms all have different cost and demand curves.
D. becomes more difficult if there were fewer firms in the group.
Answer: C
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A decrease in capital outflows from the United States will
A) decrease the balance on the current account. B) decrease the balance on the financial account. C) increase the balance on the financial account. D) increase the balance on the capital account.
When a product transformation curve is bowed outward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale E) none of the above
Vertical relationships can increase profits through
a. preventing firms from evading regulation b. eliminating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. preventing price discrimination
When price falls, quantity demanded increases. This illustrates the
a. law of supply b. law of quantity supply c. law of demand d. law of quantity demanded e. linkage between demand and supply