A cartel will break down more easily if
A) there are only a few members.
B) industry demand is very stable.
C) market prices can be observed easily.
D) there are many entrants in the industry.
D
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If the electronics market is experiencing a shortage in the supply of mobile phones being sold at a cost that buyers are more than willing to pay for, then: a. the selling price is higher than the equilibrium price
b. the equilibrium price is higher than the selling price. c. the quantity demanded is less than the quantity supplied. d. the shortage could be eliminated by lowering the price.
Which one of the following decisions most clearly reflects a lack of understanding of the concept of sunk costs?
a. You pay to have your car towed back to the repair shop because it was not fixed properly the first time. b. You decide to get a master's degree because you cannot find a job in the field in which you majored. c. You decide to purchase a piece of machinery for your business that will eliminate three employees' positions. d. You study eight hours for a final exam even though there is no way now that you can pass the course.