Cartels are more likely to succeed the larger the number of firms in an industry
a. True
b. False
B
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Refer to the scenario above. Which of the following problems is likely to occur in this market?
A) The fallacy of composition B) Moral hazard C) Adverse selection D) The free-rider problem
One effect of a stronger dollar is
A) an increase in U.S. exports and a reduction in U.S. imports. B) a reduction in U.S. exports and an increase in U.S. imports. C) an increase in net exports. D) an increase in both imports and exports. The effect on net exports is uncertain.
If price is less than its minimum average variable cost, a perfectly competitive firm that continues to produce in the short run
a. cannot cover any of its variable cost b. incurs a loss greater than its fixed cost c. can cover all of its fixed cost and some of its variable cost d. can cover all of its variable cost and some of its fixed cost e. can cover both its fixed costs and its variable cost
A price that discourages entry is called a
A) fair price B) limit price C) minimum price D) all of these choices