All of the following are true regarding tacit collusion except which one?
A) It is more likely when barriers to entry are high.
B) It is more likely when the price elasticity of demand is large.
C) It is an informal, unstated agreement.
D) It harms buyers.
B) It is more likely when the price elasticity of demand is large.
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According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
A) increases in the price level result in lower real balances. B) higher current output results in higher desired investment. C) higher prices result in higher levels of spending as consumers attempt to stay ahead of inflation. D) businesses have difficulty in distinguishing relative price increases from general price increases.
How will the market demand curve for a public good differ from the market demand curve for a private good?
Please provide the best answer for the statement.
If a manager multiplies the quantity sold by the price paid for each unit, the manager calculates:
A. total benefit. B. total revenue. C. total cost. D. total profit.
Suppose a new government policy generates $6,000 of benefits for local businesses and $4,000 of costs. We can best describe the policy as
A. potentially efficient. B. equitable. C. Pareto efficient. D. inefficient.