What is the incentive for a firm to join a cartel?
A) to be able to earn larger profits than if it was not part of the cartel
B) to be able to earn profits in the long run but not in the short run
C) to produce a larger amount of output than if it was not part of the cartel
D) to completely insulate itself from competition
A
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Which of the following institutions is responsible for supervising the banking system of the United States?
a. The Federal Reserve System. b. The Open Market Committee. c. The U.S. Treasury. d. The Federal Deposit Insurance Corporation.
The last two decades in the United States have seen
a. a fall in real wages. b. an increase in labor-force participation. c. growth in service sector employment. d. All of the above are correct.
Firms share technology with rivals,
A. in order to better compete with their rivals. B. in order to help out when their rivals are in trouble. C. to share the substantial risks of innovation. D. because they are required to by law. E. in order to pass false information to their rivals in order to drive them out of business.
Refer to the following figure. The price of capital is $50 per unit: 
How many units of capital should the firm use to produce 800 units of output at least cost?
A. 98 B. 120 C. 110 D. 102 E. 108