If there is a decrease in industry supply while the industry demand curve remains the same, then an individual firm in a perfectly competitive industry currently earning profits will see its profits
A. decrease.
B. increase.
C. not change.
D. impossible to determine.
Answer: B
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In the four decades from 1860 to 1900, the U.S. population nearly tripled. Real Gross Domestic Product (GDP)
(a) fell by more than the amount by which the population increased. (b) fell by the same amount by which the population increased. (c) rose at about the same rate as the population increase. (d) increased by even more than the population increase.
Answer the following statements true (T) or false (F)
1) Tacit collusion is more likely to occur in the commercial airline market than the fast food market. 2) Price visibility can work both for and against tacit collusion. 3) When firms have a tacit collusion agreement, if prices are highly visible, this decreases the cost of cheating. 4) The primary function of meet-the-competition clauses is to win customers. 5) Most-favored-customer clauses can help support tacit collusion.
Private saving is equal to:
A. income ? consumption. B. income - consumption ? taxes. C. income ? consumption ? government spending. D. income ? consumption ? government spending ? taxes.
Mark's Baseballs produces baseballs. Mark's Baseballs has total fixed costs of $500. Mark's average variable cost is $20, and his average total cost is $25. Mark is currently producing:
A. 5 baseballs. B. 25 baseballs. C. 100 baseballs. D. a number of baseballs that cannot be determined from the information provided.