Question 27 (3 points) Which of the following is NOT a condition that helps enfo

Question

Question 27 (3 points)

Which of the following is NOT a condition that helps enforce a cartel agreement?

Question 27 options:

easily observable prices

a small number of firms

nearly homogeneous products

large variation in input prices

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Question 28 (3 points)

Which of the following is a characteristic of oligopoly?

Question 28 options:

Mutual firm independence

Marginal cost pricing

Zero economic profits in the short run

Only a few firms in the industry

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Question 29 (3 points)

One source of the supply of dollars in the foreign exchange market is

Question 29 options:

the U.S. Mint buying dollars from the Bank of England.

SDRs being converted into dollars.

foreign citizens buying U.S. goods.

U.S. companies importing foreign goods.

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Question 30 (3 points)

A cartel will break down more easily if

Question 30 options:

there are only a few members.

market prices can be observed easily.

industry demand is very stable.

there are many entrants in the industry.

easily observable prices

a small number of firms

nearly homogeneous products

large variation in input prices

Explanation / Answer

27. Large variation in input prices (when input prices are different, firms will find it difficult to collude and fix prices)

28. Only a few firms in the industry (an oligopoly market consists of a few firms selling the same good to a large number of buyers)

29. SDR being converted into dollars (this would increase the supply of dollars in the foreign exchange market)

30. There are many entrants in the industry (this would make it easier for cartels to break down and find new members to collude with)

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