Successful tacit collusion is most likely to arise among oligopolistic firms when they:
a. are all the same size.
b. all have the same production costs.
c. do not have a means of engaging in nonprice competition.
d. each play the tit for tat strategy.
Ans: d. each play the tit for tat strategy.
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If individuals are holding more money than they desire
A) they will attempt to reduce their liquidity by using money to purchase goods. B) they will attempt to reduce their liquidity by using money to purchase interest-bearing assets. C) they will attempt to reduce their liquidity by converting real money holdings into nominal money holdings. D) they will keep their holdings constant.
Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $4 and the price of D is $2, then:
A. the marginal utility of D is twice that of C. B. the marginal utility of D is the same as that of C. C. the marginal utility of C is twice that of D. D. the marginal utility of C is four times that of D.