Which of the following is TRUE regarding a collusive agreement? I. It is illegal in the United States. II. Two or more producers agree to restrict output or raise prices. III. Firms' profits are never maximized under this sort of agreement
A) I and II
B) I and III
C) II and III
D) I, II and III
A
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A firm's fixed costs are $10 million. It sets the price at $1800 per unit and has marginal costs of $1,000. What's the firm's contribution margin per unit?
a. $12 b. $10 c. $8 d. $4
Suppose that in our economy: G = 1100, T = 900, S = 140, and NX = -90. How much of our final product is left for domestic firms to purchase for themselves?
A) 110 B) 200 C) 230 D) 50 E) 30
All of the following are automatic stabilizers EXCEPT
A) the federal income tax system. B) welfare payments. C) discretionary tax cuts. D) unemployment compensation.
Within the framework of the AS/AD model, which of the following is a true statement regarding short-run aggregate supply?
a. An increase in prices temporarily improves profit margins because important components of costs are fixed in the short run. b. An increase in prices leads to higher interest rates, which temporarily improves profit margins. c. An increase in prices leads to an expansion in the money supply, which stimulates additional output. d. An increase in prices increases real wage rates and thereby expands the size of the economy's resource base.