Collusion is a situation where businesses:
A. act in their own self-interest and ignore what the other businesses are doing.
B. have noncooperative outcomes, because they compete outside the public eye.
C. agree to cooperate, and the U.S. government works hard to encourage this behavior.
D. agree to cooperate, and their behavior does not serve the public interest.
Answer: D
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Suppose a single firm has constant marginal cost and faced the demand curve 
a. Illustrate in this graph how a monopolist who cannot price discriminate would price this good. What is the monopoly price and quantity?
b. Assuming no recurring fixed costs, how much profit does the monopolist make? How much consumer surplus is generated? c. If the monopolist were able to first-degree price discriminate instead, how much would he produce? How much profit would he make? How much consumer surplus is generated? d. Which outcome is more efficient and why? What will be an ideal response?
In peak-load pricing,
A) marginal revenue is equal in both periods. B) marginal revenue in the peak period is greater than in the off-peak period. C) marginal revenue in the peak period is less than in the off-peak period. D) the sum of the marginal revenues is greater than the sum of the marginal costs.
The fourth step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity. b. decide whether the economic change being analyzed affects demand or supply. c. draw a demand and supply model before the economic change took place. d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
Potential GDP
A. measures the maximum that a firm is capable of production B. increases ove time as the labor force grows C. increases over time as technological change occurs D. All of the above E. B and C only