Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Four chewing gum producing firms form a cartel. The firms have identical cost structures. If the cartel produces the profit-maximizing output level, each firm should produce
A. 3,000 packs of chewing gum.
B. 4,000 packs of chewing gum.
C. 12,000 packs of chewing gum.
D. indeterminate output levels from this information.
Answer: A
You might also like to view...
Firms are ________ with an economic profit of zero, they will ________ in the industry since they ________ be better off in another industry
A) satisfied, stay, won't B) unsatisfied, leave, will C) satisfied, leave, will D) unsatisfied, stay, won't
"Efficiency" refers to
a. producing output using the least amount of labor b. producing output using the least amount of capital c. producing as far inside the production possibilities frontier as possible d. producing only one out of many possible commodities e. getting the maximum possible output from available resources
Which of the following is an aim of a price-fixing agreement?
a. Reducing entry barriers b. Increasing profit c. Reducing price d. Increasing demand
At any moment in time, middle-age people tend to have higher incomes than both younger and older people do
a. True b. False Indicate whether the statement is true or false