The condition under which a cartel can maintain its stability is that:
a. the barriers to entry should be relaxed.
b. an identical product should be produced by the colluding firms.
c. there should be a large number of firms in a market.
d. there should be legal barriers to share agreements.
e. the products of the colluding firms should be highly differentiated.
b
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An international financial crisis is most often caused by
A) foreign investments and loans being withdrawn from a nation. B) a drop in the value of the U.S. dollar. C) a nation's central bank lowering domestic interest rates. D) a government refusing to pay its dues to the United Nations.
The aggregate expenditure in an open economy is defined as:
A) E = C + I + G. B) E = C + I + G + X. C) E = C × I × G × X - M. D) E = C + I + G + X - M.
See Scenario 4.1. What quantity Qc will maximize Daniel's utility given the information above?
A) 0 B) 24 C) 40 D) 60 E) none of the above
The change in a firm's total revenue due to selling an additional unit of output is known as
a. marginal revenue b. average revenue c. price d. marginal cost e. marginal revenue product