Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product.
If Quick Buck and Pushy Sales decide to collude and work together as a monopolist, then together they should produce ________ units per month and charge ________ per unit.
A. 2,000; $2
B. 1,000; $3
C. 4,000; $2
D. 3,000; $1
Answer: A
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Use the following table, which shows the supply and demand schedules for the euro, to answer the next question.Quantity of Euros SuppliedPriceQuantity of Euros Demanded400$1.101003601.002003000.903002860.804002670.70500Under a flexible exchange rate system, what will be the euro rate of exchange for one U.S. dollar?
A. 1.11 euros B. 1.00 euros C. 0.95 euro D. 1.23 euros
During a time when the inflation rate is increasing each year for a number of years, are adaptive expectations or rational expectations likely to give the more accurate forecasts? Briefly explain
What will be an ideal response?
Which of the following is NOT a disadvantage of exchange-rate targeting?
A) It relies on a stable money-inflation relationship. B) The targeting country gives up an independent monetary policy. C) The targeting country is left open for a speculative attack. D) It can weaken the accountability of policymakers.
If Happy Chickens sells its eggs only in 12 carton packages, this is an example of ________.
A) linear pricing B) two-part pricing C) commodity bundling D) an all-or-nothing offer