From society's perspective, a possible benefit of a cartel is that it could:
A. provide incentives for the introduction of superior products by competitors.
B. not earn economic profits.
C. minimize average total costs.
D. provide incentives for firms to cooperate in setting price and output.
Answer: A
You might also like to view...
A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP
a. increases by $40. b. increases by $220. c. increases by $280. d. increases by $1500.
Suppose the value of the CPI is 1.100 in year one, 1.122 in year two, and 1.133 in year three. Assume also that the price of computers increases by 3 percent between year one and year two, and by another 3 percent between year two and year three. The price level is increasing, the inflation rate is ________, and the relative price of computers is ________.
A. decreasing; increasing B. decreasing; decreasing C. increasing; decreasing D. increasing; increasing
The MFC curve increases for a monopsonist because:
A. as more workers are hired, all workers receive higher wages. B. output price rises as a firm's market power increases. C. hiring more workers does not affect wages. D. the later workers hired are less productive.
Economic profits equal
A) accounting profits. B) accounting profits less economic rents. C) total revenue less the opportunity costs of all factors of production. D) accounting profits plus the owner's labor opportunity costs.