A coalition of firms who agree to restrict output for the purpose of earning an economic profit is called a(n):
A. oligopoly.
B. duopoly.
C. cartel.
D. pure monopoly.
Answer: C
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In which of the following cases is the slope of a line positive and less than infinity?
A) As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. B) As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. C) As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. D) As the variable measured on the y-axis increases, the variable measured on the x-axis decreases.
If the additional revenue from hiring an additional worker equals the additional costs from hiring the extra worker, then we know that
A) MFC = MPPL. B) MFC/MPPL = wage. C) MFC/MRPL = 1. D) MRPL/P = MFC.
When a firm has an accounting profit that is negative, it
A) will never produce output, even in the short run. B) may still have economic profit. C) has total revenue that is less than total cost. D) cannot be producing where price equals marginal cost.
As a consumer buys more of a good, total utility eventually becomes negative
a. True b. False