What quantity of output and price do they try to set, when a group of oligopoly firms form a cartel? Will there be any changes in the price and quantity supplied if the cartel gets broken down?
By forming cartels, oligopoly firms try to set monopoly price and quantity of output. When cartels break down, quantity of output supplied increases and the market price falls.
Economics
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Which of these is an example of a fiscal policy?
a. Allocation of funds for Social Security programs b. Purchase of foreign securities by the Fed c. Printing of new dollar notes d. Sale of U.S. Treasury bonds in the open market by the Fed
Economics
A consumer chooses an optimal consumption point where the
a. marginal rate of substitution is maximized. b. slope of the indifference curve exceeds the slope of the budget constraint by the greatest amount. c. ratio of the marginal utilities equals the ratio of the prices. d. All of the above are correct.
Economics