Largesse and Ginor are major producers of commercial aircraft. Which action indicates that the two firms are colluding?
a. Largesse has a binding contract with its main supplier of raw materials.
b. Both firms benefit from economies of scale in their industry.
c. Largesse has a binding contract with Ginor to restrict production.
d. Both firms earn zero economic profits over the long run.
c. Largesse has a binding contract with Ginor to restrict production.
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An economic variable that measures something at a particular point in time is called a _____
a. stock variable b. periodic variable c. dummy variable d. flow variable e. constant variable
An increase in the expected future price level: a. Shifts both SRAS and LRAS to the left
b. Shifts both SRAS and LRAS to the right. c. Shifts SRAS left but leaves LRAS unchanged. d. Shifts SRAS right but leaves LRAS unchanged.