Which factor would facilitate tacit collusion among firms in a market?
a. an increase in the number of firms.
b. a decrease in the probability the market will continue into future periods.
c. a decrease in the interest rate.
d. none of these.
c
You might also like to view...
Refer to the table above, which gives five points on a nation's PPF. As we increase the production of X,
A) the output of Y increases. B) unemployment increases. C) the opportunity cost of each new unit of X increases. D) the opportunity cost of each new unit of X decreases.
The fact that consumers often react more to changes in the posted price of a good as compared to changes in the sales tax that is not posted is an example of
A) salience. B) salinity. C) stupidity. D) rational ignorance.
If demand is perfectly elastic, the demand curve is horizontal, and the price elasticity of demand equals 1
a. True b. False Indicate whether the statement is true or false
Suppose John is a conservative and the economy is in a recession. Which fiscal policy does he recommend?
a. increase taxes b. decrease taxes c. increase G spending d. decrease G spending e. increase the money supply