A cartel is an organization of firms in which there is a dominant firm which dictates price and output decisions to other member firms
a. True
b. False
Indicate whether the statement is true or false
False
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When the benefits of producing a good or service spill over to other people, rather than just the buyer, the spillover is referred to as
A) an external benefit. B) an external cost. C) a marginal cost. D) an equilibrium social output. E) a Coasian good.
Distinguish between a voluntary export restraint and a quota
What will be an ideal response?
The price of diamonds is high, in part because the majority of the world's diamonds are controlled by a single firm. This is an example of
a. a market failure caused by an externality. b. a market failure caused by market power. c. a market failure caused by equality. d. There is no market failure in this case.
Suppose the production function is given by Q = K1/2L1/2, and that Q = 30 and K = 25. How much labor is employed by the firm?
A. 6 B. 36 C. 25 D. 49