The pricing strategy in which one firm is allowed by its rivals to establish the market price for all firms in the market is called
A. Overt collusion.
B. Price-fixing.
C. Pattern pricing.
D. Price leadership.
Answer: D
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Angel Rodriguez pulls up in his 24-foot panel truck in front of Sezz Medi Brick Oven Pizza in Upper Manhattan. Even though it's the middle of the summer, he's delivering— firewood
He says even though fuel costs have doubled in the past year, it's still worth the premium he gets delivering ash and cherry to the captive and growing market in NYC. How would an increase in Angel's salary affect short run costs? A) Short run variable costs would increase. B) Short run fixed costs would decrease. C) Short run total costs would decrease. D) Short run average fixed costs would increase.
Which of the following statements is true?
A. When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse. B. When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase. C. When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase. D. a, b, and c E. none of the above
The classical model explains away unemployment as a long-run problem by assuming that
a. coordination in labor markets will occur within an acceptable period of time b. the economy consists of multiple, coordinated sectors c. it causes firms to cut back on their long-run production plans d. what is a problem during one period will seem more like an opportunity for economic growth during another period e. higher saving will stimulate increased investment
If a country does not engage in trade with other countries, it is known as
A. A closed economy. B. A trade deficit economy. C. A trade surplus economy. D. An open economy.