Author Question: Two heavy equipment manufacturers might collude in an effort to do all of the following except one. ... (Read 37 times)

casperchen82 · **on:** Jun 30, 2018

Two heavy equipment manufacturers might collude in an effort to do all of the following except one. Which is the exception?
a. determine a more advantageous price and quantity
b. prevent new entry into the market
c. take advantage of the legal benefits that U.S. cartels receive
d. increase their combined profits
e. predict the behavior of other competitors in the heavy equipment market with greater certainty

Question 2

A tax on productive activity tends to
a. increase formal market activity because it decreases prices
b. decrease formal market activity because it increases work incentives
c. decrease formal market activity because it lowers the return on such activity
d. decrease activity in the underground economy because people are afraid of being connected with tax fraud
e. increase activity in the underground economy because people are afraid of being connected with tax fraud