When a cartel maximizes its profit,
A) each firm necessarily produces the same amount.
B) the industry level of output is efficient.
C) industry marginal revenue equals industry marginal cost at the level of total output.
D) total output is greater than it would be without collusion.
C
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Jill, an economics student, has already spent 5 hours cleaning her room. In deciding whether or not to continue cleaning for another hour, she applies the economic principle of
A) scarcity. B) ceteris paribus. C) choosing at the margin. D) productivity.
Consumers have the tendency to replace a more expensive item with an even more expensive item.
a. true b. false
Which of the following events would cause a movement upward and to the right along the supply curve for tomatoes?
a. The number of sellers of tomatoes increases.
b. There is an advance in technology that reduces the cost of producing tomatoes.
c. The price of fertilizer decreases, and fertilizer is an input in the production of tomatoes.
d. The price of tomatoes rises
Bracket creep would less likely occur in which of the following?
A) a progressive income tax system B) a regressive income tax system C) a flat income tax system D) none of the above