Which set of actions will help three oligopolistic firms to achieve joint profit maximization?
a. They decide not to cooperate, and each pursues its individual self-interest.
b. They decide to collude and to trust each other not to defect from the agreement.
c. They sign a cartel agreement, and then each firm cheats on it.
d. They choose a dominant firm, and then they take turns being the price leader.
b. They decide to collude and to trust each other not to defect from the agreement.
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A decrease in the unemployment rate will shift the production possibilities frontier outward from the origin.
Answer the following statement true (T) or false (F)
The leading center of Eurocurrency trading is
A) New York City. B) Chicago. C) London. D) Paris. E) Frankfurt.
One reason why African elephants are endangered is _____
a. the low cost of hunting exhibitions b. exploitation by zoo owners c. many natural predators d. governments often prohibit private ownership
An advantage of automatic stabilizers is that
A. they are built into the economy by legislation and therefore are already in place when economic conditions change. B. they give the government an opportunity to spend extra tax money collected. C. they intensify changes in the business cycle. D. they produce balanced budgets.