Cheating in a cartel is more likely to occur if the industry
A) has a large number of firms.
B) has homogeneous products.
C) has easily observable prices.
D) has little variation in prices.
A
Economics
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If firms in a perfectly competitive industry are making zero economic profit, then
A) some of those firms will leave the industry, because firms cannot persistently go without making economic profit. B) new firms will enter the industry, because the new entrants would be ensured of doing as well as in their best foregone alternative. C) there is no incentive for either entry or exit. D) some of the firms will temporarily shut down.
Economics
When numerous but imperfect substitutes exist for a good, the demand for the good will tend to be
A) inelastic. B) elastic. C) unitary. D) perfectly elastic.
Economics