Once a cartel is formed, the market is in effect served by
a. a monopoly.
b. an oligopoly.
c. imperfect competition.
d. monopolistic competition.
a
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The cost of inflation will be minimized if:
A) the growth rate of inflation equals the rate of growth of wages. B) taxes are increased during the periods of high inflation. C) money supply is increased during times of high inflation. D) the growth rate of inflation exceeds the rate of growth of wages.
The federal budget is decided upon by the
A) President of the United States and the United States Treasury. B) the United States Treasury alone. C) President of the United States and the United States Congress. D) President of the United States and the Federal Reserve system. E) United States Congress and the Federal Reserve System.
A PPF bows outward because
A) not all resources are equally productive in all activities. B) consumers prefer about equal amounts of the different goods. C) entrepreneurial talent is more abundant than human capital. D) resources are used inefficiently.
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2.00. If the firm is perfectly competitive and the market price of its product is $5, which of the following is true?
A) The firm should exactly triple output in each of the plants to maximize profit. B) The firm is not producing the profit-maximizing total output. C) The firm is producing the profit-maximizing total output. D) The firm should increase output at each of the plants to maximize profit.