When oligopolistic firms in an industry form a cartel, then it is most likely that
A) both industry output and prices will increase.
B) both industry output and prices will decrease.
C) industry output will increase while prices will decrease.
D) industry output will decrease while prices will increase.
Answer: D
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If the income elasticity for canned food is 0.8, then canned food is an inferior good
Indicate whether the statement is true or false
Given the payoffs in the matrix shown, Firm A:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. has a dominant strategy to compete.
B. does not have a dominant strategy.
C. has a dominant strategy to collude.
D. None of these statements is true.
Tele-Com, Inc, the nation's largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
a. demand curve for the Disney Channel shifted to the right. b. supply curve of the Disney Channel shifted to the left. c. demand for the Disney Channel is elastic in this price range. d. demand for the Disney Channel is inelastic in this price range.
The British economist most often associated with the issue of economic rent for land was
A. John Maynard Keynes. B. A. W. Phillips. C. David Ricardo. D. Adam Smith.