Enforcement mechanism Essay Example for Free

Enforcement mechanism Essay1). In the absence of any leg everyy binding enforcement mechanism, individualistic cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions.2). When a promisor fails to put full campaign 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-run equilibrium, all firms in a pure competition market situation operating under a condition of certainty will have identical cost even though they may use different production and operation techniques. 5). The distinctive characteristic of an oligopolistic market structure is that there are recognizable interdependencies among the decisions of the firms.6). The Sherman coif prohibits7). Buying electricity off the freewheeling grid at one quarter til the hour for delivery on the hour illustrates8). Effective collusion mos tly is more difficult as the number of oligopolistic firms involved increases.9). In pure competition10). An oligopoly is characterized by11). The kinked demand curve model was developed to help develop12). The profit-maximizing monopolist, faced with a negative-sloping demand curve, will always produce13). Capital expenditures14). Which of the following public policies has (have) the effect of restricting competition15). The cost of superior 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 be 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 expect rate of return from a share of stock consists of 19). In the stringently competitive eggshell, marginal revenue (MR) is equal to20). In theshort-run for a purely competitive market, a manufacturer will stop production when21). Pate nts have been defended by some 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 lower long distance rates at night than during the day is an example of24). When the cross elasticity of demand between one product and all other products is low, one is in the main referring to a(n) ____ situation.25). The decision by the Municipal Transit Authority to either refurbish existing buses, buy new large buses, or to supplement the existing flit 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 problem28). If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the ____ of all firms is identical.29). In the electric power 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 unique complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as32). Governance mechanisms are designed33). A(n) ____ is characterized by a relatively small number of firms producing a product.34). The antitrust laws regulate all of the following business decisions except ____.36). In the case of pure monopoly