There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits. If they formed a cartel and split the production of the output evenly, the
profit-maximizing quantity produced by each firm is
A) 5.
B) 10.
C) 15.
D) 20.
B
Economics
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Imposing a minimum wage that is above the equilibrium wage rate results in
A) higher job search costs. B) lower unemployment. C) the labor market becoming more efficient. D) equilibrium in the labor market.
Economics
Why are time series data unlikely to give an accurate estimate of demand?
Economics
When demand falls and supply rises, equilibrium price will _____ and equilibrium quantity will _____.
Fill in the blank(s) with the appropriate word(s).
Economics
On the Lorenz curve, a perfectly equal distribution of income would be represented by:
A. an upward-shaped curve. B. a vertical line. C. a line with a slope of 1. D. a horizontal line.
Economics