A cartel is:
A. a group of fringe firms.
B. a group of firms that collude to maximize group profits.
C. legal in the United States as long as collusion is explicit.
D. found in monopolistically competitive industries.
Answer: B
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Refer to the figure above. What is the quantity supplied in the market when the market is supplied by one firm?
A) 30 units B) 45 units C) 60 units D) 90 units
What was the primary reason that Congress initiated deposit insurance in the 1930s?
A) protect the deposits of individual savers B) provide more of an incentive for depositors to monitor bank activities C) reduce systemic risk to the financial system D) reduce information problems in the banking system
If View Your World, a high-end window manufacturer, has contracted with a supplier to produce their glass, this is an example of ________.
A) outsourcing B) forward integration C) backward integration D) a market transaction
Refer to Figure 18.1. With a tariff, how much does the government collect for each glove imported into Duckland?
A. $0 B. between $2 and $3 C. between $8 and $10 D. more than $10