Which of the following is true regarding tacit collusion?
A) It is a formal agreement.
B) It is more likely to occur when the price elasticity of demand is small.
C) It is more likely to occur when barriers to entry are low.
D) It is illegal.
B) It is more likely to occur when the price elasticity of demand is small.
You might also like to view...
Using Taylor's rule, when the equilibrium real federal funds rate is 2 percent, there is no output gap, the actual inflation rate is zero, and the target inflation rate is 2 percent, the nominal federal funds rate should be
A) 0 percent. B) 1 percent. C) 2 percent. D) 3 percent.
Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?
a. Alexander has a comparative advantage over Jayden in the production of pencils b. Alexander has a comparative advantage over Jayden in the production of pens c. Jayden has a comparative advantage over Alexander in the production of pens d. Alexander and Jayden cannot gain from specialization and exchange.