If two duopolists can collude successfully, then both will
A) earn greater profits than if they did not collude.
B) price at marginal cost.
C) price below average total cost.
D) lower their economic profits.
A
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A cost function has economies of scale if
A) average fixed costs fall as production increases. B) total costs fall as production increases. C) the average total cost falls as production increases. D) it is less expensive to produce goods jointly rather than separately.
Which of the following statements is true for the average individual investor interested in stocks?
a. Trying to pick the stocks that will gain a great deal in the future is a risky and unlikely way to become rich. b. The majority of individual financial investors outguess the market better than professionals. c. Stocks are both low risk and low return but have high liquidity. d. Investing in stocks, bonds, or gold will (on average) provide about the same rate of return in a fiscal year.
The trading of votes by elected officials to secure favorable outcomes is called:
A. splitting the difference. B. social engineering. C. logrolling. D. grandstanding.
If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
A) increased in absolute terms. B) decreased in absolute terms. C) remained unchanged. D) increased, decreased or stayed the same. It cannot be determined.