Cartels usually succumb to divisive forces caused by:
a. stringent enforcement of a cartel agreement
b. the similarity of production costs across member firms.
c. members cheating by giving secret discounts.
d. insufficient profits compared to independent operations.
c
Economics
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The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market sale of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) remain at 4 percent a year. B) rise to 6 percent a year. C) fall to 4 percent a year. D) change, but more information is needed to determine by how much. E) None of the above answers is correct.
Economics
Which of the following is characteristic of a competitive market?
(A) Low output (B) High costs (C) Inexhaustible supply (D) Efficiency
Economics