The maximum possible profit that could be earned by a cartel is:
a. greater than the monopoly profit
b. equal to the monopoly profit.
c. less than the monopoly profit.
d. unrelated to the level of monopoly profit.
b
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When the Fed conducts an open market operation by purchasing securities from a bank, ________
A) public holdings of securities increase B) the bank's deposits increase but its reserves do not change C) the bank's deposits increase but its reserves decrease D) the bank's reserves increase
What is the significant feature of a preferential arrangement?
What will be an ideal response?
When a unit tax is placed on demanders ____
a. it will be paid entirely by demanders if the demand curve is elastic b. it will have the same effect as a similar unit tax placed on suppliers c. they will pay a larger share than if it was initially placed on suppliers d. they will pay a smaller share than if it was initially placed on suppliers
The two basic types of government regulation are
A) regulation of natural monopolies and regulation of cartels. B) economic regulation and industry regulation. C) social regulation and labor law. D) social regulation and economic regulation.