To increase their individual profits, members of a cartel have an incentive to
a. charge a higher price than the other members of the cartel.
b. increase production above the level agreed upon.
c. ignore the choices made by the other firms and act as a monopolist.
d. charge the same price a monopolist would charge.
b
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To minimize costs, a firm should use more capital and less labor if the product derived from the last dollar spent on labor is ________ the product derived from the last dollar spent on capital.
A. equal to B. greater than C. less than D. either greater than or less than
The U.S. claim to be "the land of opportunity" is not backed by recent data because a study by Miles Corak shows that
A. it has a very high level of income mobility. B. there is a weak relationship between parental and child income in the U.S. C. it does not have a high value of intergenerational income elasticity. D. it has very high capital-gains tax rates.
Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.
Which of the following is not a reason that the findings of cost-benefit analyses on public goods are only rough approximations?
a. Without prices, it is difficult to be sure how much people really value a good. b. Analysts can't be sure that the respondents to surveys are telling the truth. c. Analysis must include not only the cost of building the project but also the cost of maintenance, if any. d. People value goods differently if they are publicly provided rather than privately provided.