Macroeconomics

Which of the following is not an example of a practice that facilitate

Which of the following is not an example of a practice that facilitates “tacit collusion”? A) Uniform prices charged by the firms in a particular industry. B) Advance notice of price changes by one or more of the firms in an industry. C) The use of most-favored-customer clauses. D) The formation of a cartel.   […]

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Date: September 10th, 2020

Assume the firms in an oligopoly produce a differentiated product and

Assume the firms in an oligopoly produce a differentiated product and are initially colluding. If each firm begins to cheat (to increase sales) by underpricing the other firms, as the amount of cheating increases, the resulting industry price and output will approach the outcome for: A) perfect competition. B) monopolistic competition. C) noncooperative monopoly. D) […]

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Date: September 10th, 2020

The “minimum efficient scale” of operation in an industry is defined a

The “minimum efficient scale” of operation in an industry is defined as: A) the smallest plant size that can be operated by firms in the industry. B) the scale of operation at which economies of scale are exhausted. C) the smallest number of firms that could effectively meet demand for an industry’s output. D) the […]

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Date: September 10th, 2020