Suppose all automobile manufacturers have collusively agreed to sell their cars at a uniform price. If a firm wanted to break this agreement and not be detected, what would be one way to do this?
One answer might be secret price cuts to individuals, but these could be detected. The best way to effectively lower price would be to hold the price constant and improve the quality of the product. Better quality parts and accessories or more precise manufacturing methods to increase performance and reliability could be used, and extra options could be included to increase market share. A better product selling at the agreed-to price would be more difficult to detect.
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If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately
A) 4.5 percent. B) 5.0 percent. C) 10.0 percent. D) 15.0 percent.
If total costs are $18,000 for the year, and the firm has fixed costs of $12,000, what is the level of the firm's variable costs?
What will be an ideal response?
Fill in the table. Assume the fixed cost is $2,000.
The rate of capacity utilization is a principal determinant of autonomous investment
Indicate whether the statement is true or false