In a market-based economy, only the government can reduce economic uncertainty

Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions

a. True b. False Indicate whether the statement is true or false

Answer the following statements true (T) or false (F)

1. Prices in monopolistic industries are predicted to fluctuate widely and frequently compared to other market structures. 2. If an oligopolist's competitors follow its price cuts but ignore its price increases, the oligopolist would end up holding its price constant even if its marginal cost changes. 3. A cartel of four firms that controls 100 percent of the output in a market, and faces the same cost schedules that a monopolist would have, will set a price somewhat lower than the monopoly price for its product. 4. OPEC functions as a classic example of a kinked demand curve oligopoly. 5. A firm in a cartel typically cheats on its collusive agreement by raising its price and restricting output more than it agreed to with other cartel members.