Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck's economic profit will be ________.
A. $2,000
B. $4,000
C. $6,000
D. $3,000
Answer: D
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In reference to determining the optimal amount of advertising, managers of trade associations face each of following additional challenges except which one?
A) lack of free riders B) the ability for a firm to benefit from advertising that they did not pay for C) difference in the marginal benefits of advertising across firms D) difficulty in prescribing a fair and practical way to share the cost of advertising across firms
The aggregate supply and aggregate demand model describes the interaction of which macroeconomic variables?
A. Output and the price level B. Employment and immigration C. Prices and immigration D. Output and number of sellers
A drought that decreases Russian wheat production will
A. shift the supply curve of US corn to the right. B. shift the supply curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the demand curve for US corn to the left.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.