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. 
If Quick Buck and Pushy Sales decide to collude and work together as a monopolist, then together they should produce ________ units per month and charge ________ per unit.
A. 3,000; $1
B. 2,000; $2
C. 4,000; $2
D. 1,000; $3
Answer: B
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All of the following lead to more rapid economic growth EXCEPT
A) restricting international trade. B) encouraging higher rates of saving. C) supporting more research and development. D) encouraging higher quality education.
According to current Justice Department guidelines, mergers in an industry are seldom challenged if the industry
a. would have a postmerger Herfindahl index greater than 1,800 b. would have a postmerger Herfindahl index less than 1,000 c. has a premerger Herfindahl index greater than 1,800 d. has a premerger Herfindahl index less than 1,000 e. has a premerger Herfindahl index equal to 10,000
Economic profit
a. will never exceed accounting profit. b. is most often equal to accounting profit. c. is always at least as large as accounting profit. d. is a less complete measure of profitability than accounting profit.
If a demand curve is perfectly inelastic then:
(a) The elasticity coefficient is equal to infinity; (b) The demand curve for the good is vertical; (c) The elasticity coefficient is equal to zero; (d) Both (b) and (c) above are correct.