A cartel is a group of firms that attempts to
A) maximize joint revenue
B) maximize joint profit
C) behave independently
D) increase consumer surplus
B) maximize joint profit
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If smartwatches are considered substitutes for smartphones, then the decline in the price of smartwatches would, all else equal
A) increase the demand for smartphones. B) decrease the quantity of smartphones demanded. C) decrease the demand for smartphones. D) increase the quantity of smartphones demanded.
"Real money balances" refers to ________
A) the quantity of goods and services that money can buy B) gold and silver C) money that is actually available to be spent D) all of the above E) none of the above
Refer to the graph shown. If the market price is $3, a perfectly competitive firm:
A. incurs a loss but can still cover its variable costs and some of its fixed costs. B. earns a profit. C. breaks even. D. incurs a loss and cannot cover its variable costs.
A country's newest ruler has decided the country will become self-sufficient and ceases trade with the rest of the world. The likely outcome of this action will be that the country's citizens will be:
A. better off than before only if they have the absolute advantage in the production of most goods they consume. B. better off than before only if they have the comparative advantage in all goods C. forced to consume less than before if they possessed a comparative advantage in the production of a good. D. better off than before if they possess an absolute advantage in the production of a good.