Each member of a cartel
a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit
b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit
c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit
d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit
e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit
Question 2
Public choice theory assumes that government makes optimal policies to respond to the shortcomings of private markets.
a. True
b. False
The Many Faces of Life (Part 1)
Implied Faces
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Good computer skills are now required to be a successful member of an office staff.
Schengen Agreement
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...