Members of a cartel who refrain from selling at prices below the prices established by the cartel will usually
A) continue indefinitely to receive a high net revenue.
B) discover other ways to attract additional customers.
C) have no incentive to improve the quality of their products.
D) not compete against one another.
E) want to attract additional firms into the industry to increase the size of the cartel.
B
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Refer to Variable Cost of Production. The marginal cost of the fourth unit of output is
The following questions refer to the following table which shows a firm's variable costs of production.
a. $20 per unit.
b. $30 per unit.
c. $50 per unit.
d. $80 per unit.
The above figure shows the market demand curve for long-distance telephone calls
Suppose the marginal cost of a long-distance telephone call is 2ยข a minute for a call no matter how many minutes of calls are made and there are 3 firms in the industry. If the firms in the industry operate as perfect competitors, there are ________ minutes of calls made per hour. A) between 0 and 3 million B) more than 3 million and less than or equal to 5 million C) more than 5 million and less than or equal to 7 million D) more than 7 million and less than or equal to 9 million E) more than 9 million
An example of how economic growth might not lead to economic development is:
A. the average income in a nation increased with greater GDP growth. B. when a nation's economy grew, the rate of malnutrition among children was relatively constant. C. the rate of literacy increased among all groups when a nation's economy grew. D. people had greater social mobility due to the growth experienced in the nation.
It is easy to discern the difference between vigorous competition and the exercise of monopoly power
a. True b. False Indicate whether the statement is true or false