A major reason that firms form a cartel is to
A. enlarge the market share for each producer.
B. maximize joint profits.
C. reduce the elasticity of demand for the product.
D. minimize the costs of production.
Answer: B
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What factors will shift the aggregate expenditure function for a given level of real domestic income?
What will be an ideal response?
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency. b. even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use. c. even if business firms fail to produce goods efficiently. d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.