Which of the following is the best explanation for why the supply curve shifts in Graph B?
a. Prices for wheat, which is a substitute in production to cotton, drop.
b. Prices for wheat, which is a substitute in production to cotton, rise.
c. Prices for wheat, which is a complement in production to cotton, rise.
d. Prices for wheat, which is a complement in production to cotton, drop.
a. Prices for wheat, which is a substitute in production to cotton, drop.
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The cost-output elasticity can be written and calculated as
A) MC/AC. B) AC/MC. C) (AC)(MC). D) (AC)2(MC). E) (AC)(MC)2.
The main rationale for government regulatory functions is
A) to regulate for-profit institutions. B) to make sure that firms are maximizing profits. C) to expand the scope of the government. D) to protect consumer interests.
A cartel is
a. a type of formal collusion. b. a type of informal collusion. c. characterized by a kinked demand curve. d. a form of monopolistic competition.
How should parties in a prisoner’s dilemma resolve the situation?
a. By forming natural monopolies in the marketplace b. By pressuring members to keep output up and prices up c. By monitoring the price and output activities of each other d. By forming legally enforceable contracts to act like a monopoly