What is the incentive for a firm to join a cartel?
A) to be able to earn larger profits than if it was not part of the cartel
B) to be able to earn profits in the long run but not in the short run
C) to produce a larger amount of output than if it was not part of the cartel
D) to completely insulate itself from competition
A
Economics
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In economics, a fixed cost is a cost that
A) is present only in the short run. B) goes up as the level of output goes up. C) goes down as the level of output goes up. D) does not vary with the level of output.
Economics
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
Economics