If all of the restaurants in a small town colluded and agreed to raise dinner prices, this would lead to a loss to society because
A. some dinners that could be served would not be served.
B. collusion is illegal.
C. the restaurants would become too crowded with new customers.
D. the number of dinners served stays the same, but the buyers face higher prices.
Answer: A
You might also like to view...
The reason why the Industrial Revolution originated in Britain can be partly attributed to its:
A) command economy. B) well-developed market system. C) opposition to creative destruction. D) extractive institutions.
The figure above shows the market for polio vaccination in Africa
a) If the market is competitive and left unregulated, how many doses of vaccine will be administered? b) If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?
The economy's level of output depends upon (1) the
a. amount of land and capital available for labor to use and (2) the state of technology and types of inputs available b. cost of land and capital and (2) the cost of labor c. availability of land and (2) the availability of capital d. state of technology and (2) the cost of land e. state of technology and (2) the types of inputs available
Which of the following assumptions about human behavior is most likely to be accepted by behavioral economists?
A. People have preferences that are unstable and vary by context. B. People are almost entirely self-interested in their behavior. C. People plan out decisions well and possess lots of willpower. D. People eagerly and accurately calculate the benefits and costs of their decisions.