Figure 12.1 shows the market for a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, the market price will be ________ and each firm will produce and sell a quantity of ________.
A. $10; 200
B. $10; 100
C. $5; 500
D. $5; 250
Answer: B
You might also like to view...
Keynesian picture the aggregate demand curve as rather __________, partly because interest rates may be __________ to changes in the real money supply
A) flat; highly responsive B) flat; quite unresponsive C) steep; highly responsive D) steep; quite unresponsive
Suppose a report on the internet indicates that job prospects for graduates are bright because full employment is achieved automatically. Economists are likely to
a. be disappointed in the degree of economic understanding possessed by the author of the report b. be excited about the earning potential of new entrants into the labor market c. be anxious about inflationary indicators d. anticipate a recession e. encourage a tax cut to stimulate the economy
Some labor union wage contracts contain a cost-of-living adjustment indexed against _____________.
a. inflation b. consumer prices c. cost of materials d. profits
The production possibilities curve demonstrates the basic economic principle that
a. economies are always efficient b. assuming full employment, supply will always determine demand c. assuming full employment, an economy is efficient only when the production of capital goods in a particular year is greater than the production of consumption goodsin that year d. assuming full employment, to produce more of any one thing, the economy must produce less of at least one other good e. the production of more consumption goods this year requires the production of morecapital goods this year