An agreement between two duopolists to function as a monopolist usually breaks down because
a. they cannot agree on the price that a monopolist would charge.
b. they cannot agree on the output that a monopolist would produce.
c. each duopolist wants a larger share of the market to capture more profit.
d. each duopolist wants to charge a higher price than the monopoly price.
c
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One reaction of firms to the adverse selection problem is to
A) rely on internal funds to finance investment. B) use the stock market rather than the bond market to raise funds. C) use the bond market rather than the stock market to raise funds. D) borrow long-term rather than short-term.
What type of economic conditions are summarized by the variable a?
A) conditions other than changes in capital and labor that change productivity B) urbanization C) governmental regulations D) All of the above