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Author Question: Cartels are typically subject to cheating by their members because A) if the other firms stick to ... (Read 96 times)

EY67

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on: Jun 29, 2018
Cartels are typically subject to cheating by their members because
 
  A) if the other firms stick to the agreement, a firm can increase its profits by cutting its price.
  B) barriers to entry do not exist so new entrants will join.
  C) the U.S. Justice Department will punish any cartel agreement before the cartel has had a chance to operate.
  D) product differentiation allows the firms in the cartel to cheat.

Question 2

Paul's monthly income decreased from 2,500 to 2,300. As a result, he decreased the number of DVDs he rents per month from 5 to 4. Paul's demand for DVD rentals is
 
  A) price elastic.
  B) price inelastic.
  C) income elastic.
  D) income inelastic.


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brittrenee

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

C


EY67

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

isabelt_18

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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