A collusion breaks down if ________
A) a firm charges a price higher than the price set by the other colluding firms
B) a firm charges a price lower than the price set by the other colluding firms
C) the price set by the colluding firms equals the marginal cost of production
D) the price set by the colluding firms exceeds the marginal cost of production
B
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An example of a capital good is
A) a fiber optic cable TV system. B) an insurance policy. C) a haircut. D) an iPod. E) a slice of pizza.
Which of the following is NOT true about the national income identity given by the equation:
A) If CA is positive, national saving finances the purchase of our goods by foreign users. B) If CA is negative, our investment exceeds our national savings. C) A negative CA may imply that foreigners have confidence in the U.S. economy. D) If CA is negative and large, a country risks foreigners owning a large piece of its assets. E) None of the above.