A successful cartel may end up charging the ____ price and obtaining ____ profits.
A. monopolistic competition; zero economic
B. oligopoly; monopoly
C. monopoly; zero economic
D. monopoly; monopoly
Answer: D
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Which of the following is true about the indifference curve where one commodity (such as pollution) is "bad"?
A) It has a negative slope. B) It has a positive slope. C) It is horizontal. D) It is vertical.
In economics, the term "marginal" usually refers to
a. a small change in an economic variable b. a low-quality product or resource c. an unimportant and irrelevant economic variable d. an all-or-nothing economic decision e. a footnote or minor point
Which of the following best defines a negative network externality?
a. an increase in a consumer’s quantity demanded for a good because a greater number of other consumers are purchasing the good b. an increase in a consumer’s demand for a good because fewer consumers are purchasing the same good c. the costs involved in changing from one product to another brand or in changing suppliers d. the situation in which each firm is said to be doing as well as it can give the actions of its competitors
Consider the accompanying payoff matrix.
If Row Resorts offers reduced rates, then Column Cruises would receive the highest payoff if it:
A. kept its rates high. B. choose either strategy because it will have the same payoff in either case. C. entered into a cartel with Row Resorts and agreed to jointly reduce rates. D. offered reduced its rates.