A cartel member has the incentive to cheat on the cartel agreement because
a. it fears that other members may also cheat on the agreement.
b. the cartel prevents the member from charging the monopoly price.
c. undercutting the cartel price will increase the cartel member's profit.
d. the cartel outcome is not Pareto optimal for the cartel members.
c. undercutting the cartel price will increase the cartel member's profit.
Economics
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If the growth rates of nominal GDP and real GDP in an economy are 6% and 2% respectively, the inflation rate in the economy must be:
A) 2%. B) 8%. C) 4%. D) 3%.
Economics
Money eliminates the need for
A) any government role in the economy. B) specialization. C) people to have a double coincidence of wants. D) the market system.
Economics