Tacit collusion is more likely to occur when firms' costs ________ closely related and their products ________ close substitutes.
A) are not; are
B) are; are not
C) are not; are not
D) are; are
D) are; are
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"The concentration measures for the United States calculated by the Department of Commerce understate the degree of concentration in the newspaper industry." Do you agree? Explain
What will be an ideal response?
If the marginal profit from increasing output by one unit is negative, then to attain an optimum, the firm should
A. increase output until marginal profit equals zero. B. reduce output until marginal profit equals zero. C. increase output until marginal profit is maximized. D. reduce output until marginal profit is maximized.
If social regulation causes the supply curve in a market to shift up because of higher marginal costs, then:
a. both consumer and producer surplus will decrease. b. both producer and consumer surplus will increase. c. consumers will gain at the expense of producers. d. producers will gain at the expense of consumers. e. there will be no change in the sum of producer and consumer surplus, although its division may change.
Labor productivity is derived by dividing GDP by
a. itself b. the capital-output ratio c. national income d. capital stock e. the quantity of labor