Suppose that in 2011, 3 million plasma TVs were purchased at $950 each, while in 2012, 4 million plasma TVs were purchased at $800 each. What might have caused this change?
A. The price of LCD TVs (a substitute for plasma TVs) fell.
B. The price of LCD TVs (a substitute for plasma TVs) rose.
C. There was an advance in plasma TV manufacturing technology.
D. There were fewer workers in plasma TV manufacturing.
Answer: C
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If firms meet together to decide on prices and outputs there is
a. overt collusion. b. tacit collusion. c. price leadership. d. None of the above are correct.
The synonym economists commonly use for additional is
A) capital. B) rational. C) marginal. D) economic.
A perfectly competitive firm sells its output for $100 per unit and marginal cost is $100 per unit. To maximize short-run profit, the firm should:
A. increase output. B. decrease output. C. maintain its current output. D. shut down.
Complete the following table by finding the average and marginal product. At what input-output level will average variable cost begin to rise? Explain
