There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits. If they form a cartel, their inverse demand curve is
A) Q = 30 - P.
B) Q = 60 - 2P.
C) P = 60 - 2Q.
D) P = 30 - Q/2.
D
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"Medium term notes" have a maturity ranging up to
A) one year. B) two years. C) five years. D) ten years.
If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
a. Price would increase, and quantity would decrease. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would decrease, and quantity would increase.
Given the strict quantity theory of money, if the quantity of money doubled, prices would
a. fall by half. b. double. c. remain constant. d. increase somewhat but less than double.
Which statement is true?
A. America has always had a very productive agricultural sector. B. The most influential factor in the United States' economic development during the 19th century was a great abundance of labor. C. The central problem of economics is an oversupply of capital. D. None of the statements are true.