Explain why member firms of a cartel like opec have incentives to agree to a low cartel production level and then produce more than its quota.

Match the following definitions to your vocabulary words. 1. separation from a main group to form a new group as a result of disunity ethnic 2. group of people that share a distinctive race, culture, heritage, or nationality discrimination 3. removal of legal and social barriers which impose separation of groups integration 4. practice that treats equal people unequally; denial of opportunities to compete for social and economic rewards stereotyping 5. acting in a biased manner; using prejudicial thinking segregation

Suppose the number of firms you compete with has recently increased. you estimated that as a result of the increased competition, the demand elasticity has increased from –2 to –3 (i.e., you face more elastic demand). you are currently charging $10 for your product. what is the price that you should charge if demand elasticity is -3?

The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at $4 each 10 hams at $5 each 10 steaks at $8 each a chicken feed shortage causes the price of chickens to rise to $5.00 each in the year 2016. hams rise to $7.00 each, and the price of steaks is unchanged. a. calculate the change in the "cost-of-eating" index between 2015 and 2016. year cost of the basket 2015 $ 2016 $ instructions: enter your responses rounded to one decimal place. the official cost-of-eating index has by %. b. suppose that consumers are completely indifferent between two chickens and one ham. for this example, how large is the substitution bias in the official "cost-of-eating" index? the in the cost-of-eating index is %. the of inflation in the cost of eating reflects substitution bias.