Oligopolies in the United States rarely engage in explicit collusion because
a. it leads to lower profits
b. firms are very wary of each other in this type of market
c. they may have different dominant strategies
d. it is illegal
e. dominant strategies may not exist
D
You might also like to view...
A monopoly is a market with
A) many suppliers each producing an identical product. B) no barriers to entry. C) many substitutes. D) one supplier. E) many suppliers each producing a slightly different product.
Subprime mortgages are
A) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. B) mortgages issued to borrowers with flawed credit histories. C) mortgages which are bundled together by financial institutions and sold to investors. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
Because the presence of a warranty for a good is a signal that the good is of high quality,
A) consumers are willing and able to pay more for a good that carries a warranty. B) consumers are willing to buy goods if and only if the goods come with warranties. C) producers do not need to charge extra for warranties. D) producers can use warranties to sort out high-risk customers. E) producers must make warranties available on all goods.
How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold?
A) The supply of smartphones would decrease. B) The demand for smartphones would increase. C) The demand for smartphones would decrease. D) The price of smartphones would rise by $5.00.