A cartel is a group of firms that attempt to collude by coordinating price and output decisions
a. True
b. False
Indicate whether the statement is true or false
True
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In the consumer's NPV decision, the correct value for the interest rate R is
A) the interest rate that could be earned in a savings account when the consumer must borrow to finance the purchase. B) the interest rate that would have to be paid on a loan when the consumer could pay for the purchase with funds in a savings account. C) the interest rate charged for the loan when the consumer must borrow to finance the purchase. D) the prime rate, irrespective of whether when the consumer must borrow to finance the purchase. E) the prime rate plus the rate of inflation as measured by the CPI, irrespective of whether when the consumer must borrow to finance the purchase.
Which of the following is not true of employers who discriminate in a competitive market?
A. The employer will likely have to pay higher wages. B. The employer will likely be at a competitive disadvantage. C. The employer will likely have higher productivity. D. The employer will likely have higher costs than non-discriminating firms.
Refer to the graph shown. Suppose that the market price is $5. At this price, a perfectly competitive firm should:
A. continue to produce in the short run but shut down in the long run. B. shut down immediately. C. shut down in the short run but continue production in the long run. D. continue to produce in both the short run and the long run.
If Jack underprices Jill this month and Jill employs a tit-for-tat strategy, how can both parties return to the cartel outcome?
A. Jack must raise the price and allow Jill to underprice him for one month. B. Jack must retaliate y employing the grim-trigger strategy. C. Jack must cry and beg and plead for Jill to come back to the cartel outcome. D. Jack must report Jill to the Department of Justice.