Price fixing is an arrangement whereby firms agree to:
A. set price equal to marginal revenue.
B. set price equal to marginal cost.
C. set price equal to average total cost.
D. coordinate their pricing decisions.
Answer: D
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A) increases leisure. B) decreases leisure. C) has an ambiguous effect on leisure. D) has no effect on leisure.
Smoothing a time series of observations
A) is a form of statistical cheating. B) is used to reveal an underlying pattern in the data. C) renders the resultant forecast unusable. D) allows statisticians to use less data than would otherwise be required.
Which of the following is true? The federal government's budget
a. was always in surplus until the 1980s b. is in deficit now but has been in surplus in most of the past 40 years c. has been virtually perfectly balanced for the past 5 years d. deficit has averaged around zero for the last several decades e. switched from deficits to surpluses in the late 1990s
Which of the following marginal costs might be incurred if society chose to pursue a zero-tolerance policy regarding crime?
a. Education funds would be diverted to crime prevention. b. Individual privacy protections would be strengthened. c. People would have to begin growing their own food. d. Fewer scarce resources would be used for prisons.