If the price elasticity of supply is 2 and the quantity supplied decreases by 6%, then the price must have decreased by 3%
a. True
b. False
Indicate whether the statement is true or false
True
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In a cartel, firms jointly act as
A) a monopolistic competitive firm. B) a perfectly competitive firm. C) a monopoly firm. D) an oligopolistic firm.
Which of the following would be illegal under the Robinson-Patman Act?
a. Ford and General Motors meet to fix the price of cars. b. Computer makers form a cartel. c. General Mills and Kelloggs decide to merge. d. Exxon sells gas at a higher wholesale price to independent gas retailers than to Exxon retailers. e. Exxon Oil and Mobil Oil elect the same person to their boards of directors.
The ATC curve is curve
A. W.
B. X.
C. Y.
D. Z.
Refer to the figure above. If the monopolist faces a constant marginal cost of $6, at what price should it sell its output to maximize profits?
A) $2 B) $6 C) $10 D) $12