Cartels rarely succeed for long because they find it difficult to
A) avoid losing the advantages from economics of scale.
B) keep marginal costs high and marginal revenue low.
C) keep members from offering discounts and new firms from entering.
D) keep members from reducing output below the optimal level.
E) prevent average cost from falling below marginal cost.
C
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Which of the following is TRUE about comparative advantage?
A) Comparative advantage explains trade among nations, but not within nations. B) Comparative advantage explains trade within nations, but not among nations. C) Comparative advantage explains trade within nations and among nations. D) Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm.
Which of the following is not a barrier to entry?
A) licenses B) patents C) economies of scale D) U.S. antitrust legislation