In the scenario above, if both firms cheat on the agreement, producing more than the agreed amount, then
A) each firm makes zero economic profit.
B) the outcome is identical to a monopoly.
C) the industry's economic profit is the maximum profit that can be made by the duopoly.
D) each firm makes a greater economic profit than it would make if it complied with the agreement.
A
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Uncoordinated decisions in perfect competition lead to mass confusion and inefficiency.
Answer the following statement true (T) or false (F)
The short-run aggregate supply curve is drawn with: a. the price level on the vertical axis and real GDP on the horizontal axis
b. the price level on the vertical axis and nominal GDP on the horizontal axis. c. nominal GDP on the vertical axis and real GDP on the horizontal axis. d. real GDP on the horizontal axis and the rate of unemployment on the vertical axis.
The number of people receiving Medicare is expected to grow to 74 million by the year
A) 2105. B) 2020. C) 2025. D) 2075.
Refer to the data. Which of the following is correct?
Answer the question on the basis of the following demand schedule:
A. Although the slope of the demand curve is constant, price elasticity declines as we move
from high to low price ranges.
B. Although the slope of the demand curve is constant, price elasticity increases as we move
from high to low price ranges.
C. Although the demand curve is convex to the origin, price elasticity of demand is constant
throughout.
D. A steep slope means demand is inelastic; a flat slope means demand is elastic.