A cartel produces output at a point where marginal revenue is equal to marginal cost for the industry in order to ______.
a. fix prices below total costs
b. cheat on a cartel agreement
c. maximize joint output
d. maximize joint profit
d. maximize joint profit
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A congested street is ________ in consumption
A) excludable and rival B) non-excludable but rival C) excludable but non-rival D) non-excludable and non-rival
Gallons of milk at a local grocery store are priced at one for $4.00, or two for $6.00 . The marginal cost of buying a second gallon of milk:
a. equals $6.00. b. equals $4.00. c. equals $3.00. d. equals $2.00.
A firm that is currently producing at a level of output where marginal revenue is greater than marginal cost can increase profits by producing one more unit of output
a. true b. false
A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 33 percent chance the recession will end in six months and profits will return to $100 million. However, there is a 67 percent chance the recession will not end in six months, resulting in a $7 million loss. The expected profits over the next six months are:
A. $33 million. B. $28.31 million. C. ?$2.31 million. D. $64.69 million.