Cartels are typically subject to cheating by their members because
A) if the other firms stick to the agreement, a firm can increase its profits by cutting its price.
B) barriers to entry do not exist so new entrants will join.
C) the U.S. Justice Department will punish any cartel agreement before the cartel has had a chance to operate.
D) product differentiation allows the firms in the cartel to cheat.
A
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During the decade of the 1920s, the U.S. economy
(a) was generally healthy and gave no indication of the troubles that lay ahead regarding the Great Depression. (b) was relatively stagnant in terms of growth of total output with small declines in agriculture and housing, which suggested that difficult times might lie ahead in the 1930s. (c) experienced actual declines in overall production levels, including agriculture and housing, which suggested that even more difficult times probably lay ahead. (d) experienced relatively rapid growth in overall output but in the late 1920s nevertheless showed weaknesses in certain sectors such as agriculture, housing and the financial sector, which suggested the possibility of difficult times ahead.
In measuring income distribution, income and population are grouped by quintiles, each of which represents ______ percent of the income and population
a. 25 b. 20 c. 10 d. 100 e. 50