Nominal GDP can change A) only if prices change. B) only if ...

[luminitza]

Nominal GDP can change
 
  A) only if prices change.
  B) only if the quantities of goods and services change.
  C) only if prices increase.
  D) if either prices or the quantities of goods and services change.
  E) only if prices and the quantities of the goods and services change.

Question 2

Under what situations will a colluding firm cheat?
 
  What will be an ideal response?

[moormoney]

Answer to Question 1

D

Answer to Question 2

A colluding firm will cheat if it can cheat without being detected or punished. A colluding firm can also cheat if it is in danger of bankruptcy. In addition, if the government outlaws a product, then firms selling that product will know that on the last day of legal sales, no individual firm has an incentive to continue playing a cooperative strategy. Therefore, these firms are likely to cheat.

[luminitza]

Excellent

[chereeb]

Thanks for the timely response, appreciate it