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Suppose there is a decline in marginal costs for one member of a cartel. What impact will this have on the incentive of that firm to cheat on the cartel agreement? Explain.
Suppose that the required reserve ratio for checking deposits us 10% and that banks do not hold any access reserves. If the Fed sells $1 million of government bonds, what is t
The demand for 1,000 units of a part to be used at a uniform rate throughout the year may be met by manufacturing. The part can be produced at the rate of 3 per hour in a depa
Ole Harry is the skipper of the Better Late Than Never, a VERY slow freighter that runs from Singapore to Los Angeles and back without making any other stops. The boredom of t
The following graph shows the daily market for wine when the tax on sellers set at $0 per bottle. Suppose the government institutes a tax of $5.80 per bottle, to be paid by th
Authoritarian persistence can be can be demonstrated by: Which of the following polities is sometimes considered a good example of a “competitive authoritarian” regime? Which
Should sports leagues be allowed to remain as cartels? More than 100 years ago, the American legislative leaders decided that it was necessary to pass laws prohibiting "...any
The HHI for automobiles is 2,350, for sporting goods is 161, for batteries is 2,883, and for jewelry is 81. Which of these markets is an example of monopolistic competition?
Little Bikes, Inc., sells tricycles, in partially-assembled and fully assembled forms. Parents who assemble their own tricycles benefit from the lower price of $40 per tric
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