A formal agreement among the firms in an industry to coordinate their production and pricing ...

A formal agreement among the firms in an industry to coordinate their production and pricing decisions in order to earn monopoly profits is known as
 a. price discrimination
  b. the kinked demand curve
  c. monopolistic competition
  d. a cartel
  e. joint competition

QUESTION 2

The basic difference between a public bureau and a market firm is that the bureau
 a. has an incentive to maximize profits
  b. has no incentive to minimize costs
  c. managers do not attempt to maximize their self interest
  d. managers are more likely to be concerned with the public interest than their own self interest
  e. faces a budget constraint placed up it by the voters

QUESTION 3

An oligopoly model that describes formal collusion is the
 a. kinked demand curve model
  b. cartel model
  c. cost-plus pricing model
  d. game theory model
  e. horizontal merger model

QUESTION 4

If managers of a private corporation perform poorly, each owner has the option of
 a. closing down the firm
  b. selling her share of the firm
  c. managing the firm herself
  d. paying no taxes on the little profit she does receive
  e. selling off the plant and equipment of the firm

QUESTION 5

Which of the following helps to make a cartel successful?
 a. stable demand and costs
  b. differentiated output
  c. highly variable cost conditions
  d. highly variable demand conditions
  e. rapidly changing technology

QUESTION 6

Private firms and public bureaus differ in the sense that public bureaus
 a. sometimes have top-level managers chosen by shareholders
  b. sell most of their output on a per unit basis
  c. receive most of their revenues through a budget appropriation rather than through the sales of goods or services
  d. are sometimes inefficient
  e. hire consultants to solve difficult problems