Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, each firm will earn an economic profit of ________.
A. $1,250
B. $1,000
C. $500
D. $0
Answer: C
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Total planned real expenditures measured along the aggregate demand curve are made up of
A) consumption spending, factor payments, investment spending, and net export spending. B) consumption spending, income, government spending, and net export spending. C) consumption spending, saving, investment spending, and government spending. D) consumption spending, investment spending, government spending, and net export spending.
An automobile manufacturing plant is likely to have a ______________ price elasticity of supply than a bread bakery due to _________________.
A. more elastic; a more flexible production process B. more elastic; greater availability of inputs C. less elastic; a less flexible production process D. more elastic; lower availability of inputs
Movements in the exchange rate will shift the aggregate demand curve of an economy
a. True b. False Indicate whether the statement is true or false
Real GDP per person tells us the income and expenditure of the average person in the economy
a. True b. False Indicate whether the statement is true or false