Four automobile manufacturers account for 92 percent of total sales in their industry. They experience large economies of scale and favor tariffs on imported automobiles. What additional information is needed to classify this industry as a collusive oligopoly?
a. the market share for each firm in the oligopoly
b. the existence of a cartel agreement between them
c. evidence that they have zero long-run economic profits
d. a high Herfindahl-Hirshman Index for their industry
b. the existence of a cartel agreement between them
Economics
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The book that is the basis for modern macroeconomic theory is
a. The Wealth of Nations. b. Principles of Political Economy. c. The General History of Money and Banking. d. The General Theory of Employment, Interest, and Money.
Economics
Bank A holds $1 million in required reserves and the required reserve ratio is 9 percent. It follows that Bank A holds checkable deposit liabilities that total approximately
A) $111 million. B) $11.11 million. C) $90 million. D) $900 million.
Economics