In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
A) When the amount of revenue generated by each member of the cartel is the same.
B) When there are no economies of scale in production.
C) When each member of the cartel is using the same scale of production.
D) When marginal costs of production are the same for each of the members of the cartel.
D
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Why must long-run equilibrium in monopolistic competition occur at the point at which the demand curve is tangent to the average total cost curve?
What will be an ideal response?
Human societies have typically run out of resources before substitutes have been discovered or developed
Indicate whether the statement is true or false
What does a positive U.S. capital inflow signify?
a. Nothing b. That the government is running a budget deficit c. That more funds were invested in the U.S. by foreigners than the U.S. invested abroad during a given time period d. That the U.S. is running a trade surplus e. The U.S. net exports are positive
A 20 percent increase in the price of flour reduces flour consumption by about 10 percent. Such a price increase causes households to
a. spend less on flour. b. spend more on flour. c. spend the same amount on flour as before. d. consume more goods like salt and baking powder, which are flour complements.