To maximize joint profits, a cartel must determine the level of output at which:
A) joint marginal revenue equals the marginal cost of the largest member of the cartel.
B) marginal revenue equals joint marginal cost.
C) the horizontally sum of the members marginal cost curves is at a minimum.
D) joint marginal revenue equals the marginal cost of the smallest member of the cartel.
B
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How does the "rule of law" increase wealth for a country?
A. It is up to society to make decisions and they can choose whatever rules they want. B. Rule of law takes away incentives for the business. C. Known and predictable laws make governing a business less risky. D. It guarantees business owners profit which improves the country's standard of living.
The government proposes a tax on flowers in order to boost its revenue. Consumers will bear all of this tax if the:
a. demand for flowers is perfectly inelastic. b. supply of flowers is perfectly inelastic. c. demand for flowers is perfectly elastic. d. demand for flowers is unit elastic.
Which of the following about economic growth is true?
a. The developed nations are growing rapidly and the less-developed nations are stagnating. b. Most of the countries that have achieved the highest growth rates in the world during the last quarter of a century were classified as LDCs in 1980. c. It is an oversimplification to divide the world into the growing, developed nations and the stagnating, less-developed nations. d. Both b and c are true. e. All of the above are true.
Deadweight loss:
A. occurs when the market price is set below the equilibrium price. B. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity. C. occurs when the market price is set above the equilibrium price. D. All of these are true.