You read that 40 firms that grow and export strawberries to the United States decide to form a cartel. The cartel aims to raise the price of strawberries and reduce output to increase profits for the strawberry growers. You predict that this cartel will probably
A. not be successful because there are too many firms that are trying to organize the cartel and there are a number of good substitutes for strawberries.
B. not be successful because it is difficult to export a perishable product like strawberries.
C. be successful because enforcing the rules among only 40 firms is very manageable.
D. be successful because the demand for strawberries is very inelastic.
Answer: A
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Which expression best represents the break-even level of investment when incorporating labor-augmenting technological change into the Solow growth model?
A) (d + n + g)k B) (d + n)k C) (d + n ) / (k + g) D) (d + n + k) / (gk)
The F-test is used in forecasting to
A) establish confidence intervals for testing regression coefficients. B) examine the degree of multicollinearity among independent variables. C) determine how well a regression equation can account for dependent variable values. D) determine whether an identification problem exists.
As one moves down a straight-line, down-sloping demand curve, price elasticity will:
a. change from elastic, to unit elastic, then to inelastic. b. remain the same between any two points. c. change from inelastic, to elastic, then to unit elastic. d. change from unit elastic, to elastic, then to inelastic. e. change from elastic, to inelastic, then to unit elastic.
Refer to Table 10.2. The marginal product of the third unit of labor is:
A. 25. B. 50. C. 60. D. 160.