Under which of the following market conditions is it most difficult to maintain a cartel agreement?
a. There are many firms in the industry and these firms have similar costs.
b. There are many firms in the industry and these firms have different costs.
c. There are few firms in the industry and these firms have similar costs.
d. There are few firms in the industry and these firms have different costs.
B
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Domestic producers of goods that compete with imports benefit from protectionism in the short run
a. True b. False
A profit-maximizing firm employs resources to the point where
A. MRP = MRC. B. MP = product price. C. MRC = MP. D. resource price equals product price.
To economists, investment means buying stocks and bonds.
Answer the following statement true (T) or false (F)
When Williams-Sonoma introduced its first bread baker at $200, sales were low. But when it decided to offer a fancier $300 version, sales of the $200 bread baker rose tremendously. An economist concluded that consumers needed another bread baker for comparison to decide whether the $200 bread baker was a deal. This economist is likely to be a(n):
A. behavioral economist. B. traditional economist. C. engineering economist. D. irrational economist.