An agreement between two duopolists to function as a monopolist usually breaks down because
a. they cannot agree on the price that a monopolist would charge.
b. they cannot agree on the output that a monopolist would produce.
c. each duopolist wants a larger share of the market to capture more profit.
d. each duopolist wants to charge a higher price than the monopoly price.
c
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In general, as wages increase:
A. people are willing to work less. B. people are willing to work more. C. it does not affect people's willingness to work. D. the benefit of working goes down.
When the Fed raises the required reserve ratio, then the:
a. ability of banks to make loans is restricted. b. ability of banks to make loans is enhanced. c. ability of banks to make loans is unaffected. d. interest rate that banks pay to the Fed to borrow money is increased. e. interest rate that banks pay to other banks to borrow money is increased.
The income of the town of Kennebunkport has been growing by 2 percent per year. If this growth continues into the future, how long will it take until the town's income has doubled?
a. About 36 years b. About 24 years c. About 96 years d. About 50 years e. About 144 years
Suppose there are constant returns to scale. Now suppose that over time a country doubles its workers, its natural resources, its physical capital, and its human capital, but its technology is unchanged. Which of the following would double?
a. both output and productivity b. output, but not productivity c. productivity, but not output d. neither productivity nor output