Whenever a cartel in a duopoly breaks down,
a. both firms obtain higher profits
b. total output in the market will rise.
c. price in the market will rise.
d. the socially optimal output will be produced.
b
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Using the economic way of thinking, which of the statements listed below best answers the following question: Why do professional athletes tend to make more money than professional poets?
A) Americans love sports and hate poetry. B) Poets are less greedy and materialistic than athletes. C) More people are willing to pay $50 per ticket to see an athletic competition than they are to listen to a poet. D) The supply of poets is too low.
Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that
A) the demand for swimming pool maintenance services has increased. B) swimming pool maintenance services are becoming more technologically advanced. C) the law of supply has been violated. D) the supply of swimming pool maintenance services has decreased.
We study the simple model of competitive markets because it helps to:
A. provide useful insights to markets that are not perfectly competitive. B. show how the government controls the economy. C. indicate whether buyers or sellers matter more. D. show how poorly the economy actually functions.
Which of the following is not a form of capital?
a. loanable funds b. John Deere farm machinery c. sourdough used to make bread d. sourdough bread on your Thanksgiving dinner table e. sourdough bread used to make a tuna sandwich at Timpone's restaurant