If the automobile industry has become highly concentrated and cartelized. To maintain profits, firms may
A. allow newcomers to favorably enter the market.
B. become price takers.
C. prevent entry.
D. lower prices to raise revenues.
Answer: C
You might also like to view...
For most years since 1980, the natural unemployment rate was higher in Canada than in the United States. What possible explanation for some of this difference has been suggested?
What will be an ideal response?
A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this information, a fair price of this stock would be
A) $25.00. B) $31.25. C) $20.00. D) Cannot be determined without additional information.
Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Suppose the equilibrium is for a factory in Los Angeles
What would happen if the same factory were in the middle of Nevada? A) The marginal cost curve (1 ) would shift to (2 ) and there would be no difference in the level of abatement. B) The marginal cost curve (2 ) would shift to the left and there would be less abatement in Nevada. C) The marginal benefit curve (4 ) would shift to the left and there would be less abatement in Nevada. D) The marginal benefit curve (2 ) would shift to the right and there would be more abatement in Nevada.
The reason economists create a market basket is to:
A. track its changing prices to reflect changes in purchasing patterns of firms. B. see how the cost of buying the goods and services on the list changes over time. C. know how each individual consumer is being affected by changing prices. D. get a sense of how people buy items on a weekly basis.