What is the difference between explicit collusion and implicit collusion?
What will be an ideal response?
Explicit collusion involves making an agreement about not competing. In implicit collusion no formal agreement is reached, but firms tacitly avoid competing with each other.
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Because of the positive externality of vaccinations, economic efficiency would be improved
A) if more people were vaccinated. B) only if no people were vaccinated. C) only if all people were vaccinated. D) if fewer people were vaccinated.
Suppose that once a well is dug, water flows out of it continuously without any additional effort. Customers collect their water and pay a per gallon fee when they leave the site of the well. In the short run, the competitive firm in this market
A) has no variable costs. B) has no fixed costs. C) will shut down. D) can produce water at no cost.