Enforcement mechanism Essay Example for Free

Enforcement mechanism Essay1). In the absence of any legally attach enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in mysterious price concessions.2). When a promisor fails to put full parkway into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a3). The Herfindahl-Hirschman index is a measure of ____.4). In long haul equilibrium, all steadfastlys in a pure competition market situation operating under a condition of certainty get out have identical costs even though they may drill different production and operation techniques. 5). The distinctive characteristic of an oligopolistic market structure is that there ar perceptible interdependencies among the decisions of the crockeds.6). The Sherman Act prohibits7). Buying electricity off the freewheeling grid at one quarter til the moment for delivery on the hour illustrates8). Effectiv e collusion generally is more difficult as the come of oligopolistic firms involved increases.9). In pure competition10). An oligopoly is characterized by11). The kinked demand curve model was developed to alleviate explain12). The profit-maximizing monopolist, faced with a negative-sloping demand curve, will always produce13). Capital expenditures14). Which of the following(a) public policies has (have) the effect of restricting competition15). The cost of capital can be thought of as the rate of return required by investors in the firms securities.16). ____ occur whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.17). A firm in pure competition would shut down when18). The expected rate of return from a destiny of stock consists of 19). In the purely competitive case, marginal revenue (MR) is equal to20). In theshort-run for a purely competitive market, a manufacturer will stop prod uction when21). Patents have been defended by some(prenominal) on the grounds that they stimulate inventive activity. Others have argued for changes in current patent laws because22). A monopoly will always produce less than a purely competitive industry, ceteris paribus.23). The practice by telephone companies of charging pass up long-distance rates at night than during the day is an example of24). When the cross elasticity of demand amongst one product and all other products is low, one is generally referring to a(n) ____ situation.25). The decision by the Municipal pass Authority to either refurbish subsisting buses, buy new large buses, or to supplement the existing fleet with mini-buses is an example of26). Which of the following statements is (are) true concerning a pure competition situation?27). Which of the following are not approaches to resolving the principal-agent difficulty28). If a cartel seeks to maximize profits, the market share (or quota) for each firm shoul d be set at a level such that the ____ of all firms is identical.29). In the electric motive industry, residential customers have relatively ____ demands for electricity compared with large industrial users and generally are charged ____ rates.30). The largest problem faced in cartel pricing agreements such as OPEC is31). Non-redeployable durable assets that are dependent upon curious complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as32). government mechanisms are designed33). A(n) ____ is characterized by a relatively small number of firms producing a product.34). The antitrust laws make up ones mind all of the following business decisions except ____.36). In the case of pure monopoly