When the amount of sales is large, but each sale has a low value, cheating on a cartel arrangement can significantly increase an individual firm's profits and is thus tempting
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is a final good or service?
A) the CPUs purchased by Dell to be used in their computers B) the fertilizer purchased by Royal Lawn and Landscape C) the computers purchased by Office Depot for sale to its customers D) the grilled chicken purchased by Taco Bell for use in their burritos E) a new replacement muffler installed by Midas Mufflers
If the government increases expenditure by $40 billion and increases tax revenues by $40 billion, what is the impact on aggregate demand? Explain your answer
What will be an ideal response?
For a perfectly competitive firm, in the short run, which of the following statements is true?
a. A price above minimum average variable cost, but below average total cost will produce an economic profit. b. A price below minimum average variable cost will cause the firm to shut down. c. Marginal cost is parallel to the axis showing quantity of output. d. Price is always greater than marginal revenue. e. Every firm contributes a significant amount to the total market output.
Gallons of milk at a local grocery store are priced at one for $4.00, or two for $6.00 . The marginal cost of buying a second gallon of milk:
a. equals $6.00. b. equals $4.00. c. equals $3.00. d. equals $2.00.