Imposing a restrictive quota on imported plasma TVs will likely
a. increase the price of the plasma TVs and decrease the quantity consumed.
b. increase both the price of the plasma TVs and the quantity consumed.
c. leave the price of the plasma TVs unchanged but decrease the quantity consumed.
d. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports
A
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A method of forcing a company to internalize the total cost of production is
A) to impose a tax on the company to reduce production. B) to provide a subsidy to encourage production. C) for government not to interfere in the company's activities. D) to force the company to reduce the wages it pays to its employees.
Which of the following is not true? a. Collusion is relatively rare, in part because it is illegal in many countries
b. Collusion is relatively rare, even though members find it easy to agree on key decisions. c. Collusion is relatively rare, in part because members frequently have an incentive to cheat on the cartel. d. Collusion is harder to maintain when differentiated products are involved, which introduce many ways to undercut a collusive agreement.