1. Which of the following have greater incentives to collude and to form cartels in an...

1. Which of the following have greater incentives to collude and to form cartels in an effort to achieve monopoly-like profits?

a.	Monopolists
b.	workers in a competitive labor market
c.	monopolistic competitors
d.	firms in a perfectly competitive market
e.	Oligopolists

2. A monopolistically competitive market consists of many sellers, an oligopoly consists of ________ seller(s), and a monopoly consists of ________ seller(s).

a.	one; one	d.	a few; one
b.	one; two	e.	many; one
c.	a few; many

3. When two or more firms form a ________ agreement and set price and quantity in unison, economists refer to them as ________.

a.	competitive; a cartel
b.	collusive; social benefactors
c.	collusive; a cartel
d.	monopolistically competitive; social benefactors
e.	monopolistically competitive; a cartel

4. When a market is characterized by mutual interdependence

a.	one firm’s pricing decision does not affect the market share of any other firm.
b.	one firm’s quantity decision does not affect the market share of any other firm.
c.	all firms always act in unison to produce the monopoly quantity.
d.	the actions of one firm have an impact on the price and output of its competitors.
e.	the actions of one firm have no impact on the price and output decisions of its competitors.

Expert Solution

Q1) Since in oligopoly there are few big firms, it is profitable for them to collude and form a cartel and achieve monopoly like profits. In case of oligopoly, the firms are dependent on each other for price and output decisions and price and output decision of one firm is very likely to affect the price and output decision of other firms. So, the answer is oligopolists.

Q2) It is the characteristic of oligopoly to have few big sellers and many buyers and that of monopoly to have a single or one seller and many buyers. So, the answer is a few; one.

Q3) When two or more firms form collusive agreement and set price and quantity in unison, the economists refer to them as cartel. A cartel by definition is the group of few big firms who come together to take price and output decisions for the whole group.

Q4) When the market is characterized by mutual interdependence, the action of one firm have an impact on the price and quantity of its competitors. Interdependence means that the firms depend on each other for price and output decisions so that price and output of one firm significantly affect the price and output of other firms in the market.

Rahul Sunny answered 1 year ago

Two firms decide to form a cartel and collude in a way that maximizes total profits....

Two firms decide to form a cartel and collude in a way that maximizes total profits. Each firm has zero production costs and each firm is given a positive output quota by the cartel. Which of the following statements is NOT true? Select one: a. Output would be lower than if the firms behaved as competitors. b. All of the other statements are false. c. Output would be lower than if the firms behaved as Cournot firms. d. The price elasticity...

1. Which of the following statements is correct with respect to economic incentives to release financial...

1. Which of the following statements is correct with respect to economic incentives to release financial information? Multiple Choice Owners and managers do not have an economic incentive to supply the amount and type of financial information because it has no effect on the company’s ability to raise capital at the lowest cost. Because financial disclosures are regulated, owners and managers have little economic incentive to supply the amount and type of financial information that will enable them to raise...

1. Why might be the incentives in the form of gift certificates be better than just...

1. Why might be the incentives in the form of gift certificates be better than just providing cash to employees? 2. What are some of the advantages or disadvantages of a sales intensive program in which the top performers receive a trip or a larger reward, while other sales individuals receive lesser or different types or rewards? -Principles of Humans Resources.

Which of the following is false? A. The greater the interest rate, the greater the present...

Which of the following is false? A. The greater the interest rate, the greater the present value, given a $100 future value and holding the time period constant. B. The discount factor is the reciprocal of the compound factor. C. The longer the time period, the smaller the present value, given a $100 future value and holding the interest rate constant. D. A future dollar is always less valuable than a dollar today if interest rates are positive.

Enumerate 1 liquid and 1 solid which have a specific gravity (a) greater than 1 (b)...

Enumerate 1 liquid and 1 solid which have a specific gravity (a) greater than 1 (b) less than 1 Your answer

Which of the following is not a risk factor related to incentives and pressures for fraud?

Which of the following is not a risk factor related to incentives and pressures for fraud?a.Heavy gambling problems of one of the board membersb.Lucrative bonus plans executives and managers based solely on firm’s financial performancec.Understating earnings for tax reporting purposes

(i) Which security has greater total risk? Which has greater systematic risk? Which has greater unsystematic risk? Which security will have a higher risk premium?

(i) Which security has greater total risk? Which has greater systematic risk? Which has greater unsystematic risk? Which security will have a higher risk premium?(ii) Construct a two-asset equally weighted portfolio is minimising the overall risk. What is the portfolio's Beta? What is the standard deviation of the portfolio?(iii) Calculate the Sharpe ratios for the three securities and the equally weighted portfolio in part ii. Is it possible to build a two-asset equally weighted portfolio with a higher Sharpe ratio...

1. Given that comparative advantage is a dynamic concept, which is likely to have greater impact...

1. Given that comparative advantage is a dynamic concept, which is likely to have greater impact on wages: technical change or trade? Why? 2. We should see worldwide convergence of prices and rents. Why don’t we? 3.Ashland is considering whether to engage in international trade in rice and furniture. The world price of rice is lower than Ashland’s “no-trade” price, but its “no-trade” furniture price is lower than the world price. Assume land is specific to rice, capital is used...

1. Which of the following statements is true? a. consumers bear a greater excise tax...

1. Which of the following statements is true? a. consumers bear a greater excise tax burden than producers when the demand for the good is inelastic b. consumers bear a greater excise tax burden than producers when the demand for the good is elastic c. consumers and producers bear equal excise tax burdens when the demand for the good is inelastic d. consumers and producers bear equal excise tax burdens when the demand for the good...

which regions of the body have a greater percentage of sensory receptors ?

Question