Under price leadership
a. the leader must be the dominant firm in the industry
b. all firms follow price changes initiated by the leader
c. price cuts are followed by other firms in the industry, but price increases are not
d. price increases are followed by other firms in the industry, but price cuts are not
e. price wars often occur as a result of tit-for-tat strategies
B
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Which of the following is correct?
a. Short run fluctuations in economic activity happen only in developing countries. b. During economic contractions most firms experience rising profits. c. Recessions come at irregular intervals and are easy to predict. d. When real GDP falls, the rate of unemployment generally rises.
The Emission Trading Scheme of the European Union
A) created a market for pollutants. B) sets a cap on the amount of pollutants in each country. C) allowed firms to benefit from emitting pollutants. D) sets the amount of per-unit tax on each pollutant.