Firms will have a greater incentive to cheat on a collusive agreement when
a. the number of sellers is relatively small
b. total market sales are small
c. the market is perfectly competitive
d. demand is rapidly changing
e. prices are known to all firms in the market
D
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If the quantity demanded changes by a relatively small amount for a given change in price, then demand is
A) perfectly inelastic. B) perfectly elastic. C) elastic. D) inelastic.
The annual income that can be consumed without diminishing the total capital assets of a nation is
(a) purchasing power parity income. (b) sustainable national income. (c) environmental capital stock. (d) per capita income.
Answer the following statements true (T) or false (F)
1) To determine the optimal quantity to hold in inventory, a profit-maximizing manager uses marginal analysis. 2) As the quantity held in inventory increases, the probability of selling an additional unit increases 3) The expected marginal benefit falls as the quantity held in inventory increases. 4) As the quantity held in inventory increases, the probability of selling less than that quantity increases. 5) The expected marginal cost decreases as the quantity held in inventory increases.
A profit-maximizing monopolist operates where demand is: a. inelastic
b. unit elastic. c. elastic. d. infinitely elastic.