When oligopolists join together in a cartel, they
A. have chosen to ignore interdependence.
B. have admitted that their behavior is interdependent.
C. are planning to violate the law of supply and demand.
D. are trying to behave like perfect competitors.
Answer: B
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Explain how governments restrict international trade and who benefits as well as who loses from the restrictions
What will be an ideal response?
A reason why a perfectly competitive firm's demand for labor curve slopes downward is that
A) each additional unit of labor hired is less efficient than previously hired units. B) the extra cost of hiring additional units of labor increases as a firm hires more units of labor. C) in the short run, as more labor is hired, labor's marginal product falls because of the law of diminishing returns. D) the firm's demand curve for the product that uses labor is downward sloping.
Suppose the local market for legal services has an upward sloping supply curve, PL = 150 + 0.0001QL where PL is the price of legal services and QL is the number of hours of legal services
If the equilibrium price of legal services is $250 per hour, what is the aggregate economic rent earned by lawyers in this market? A) $50,000 B) $1,000,000 C) $50,000,000 D) $100,000,000
Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U = V1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation ruining illness (V = 0) is 30%. What is the expected value of V?
a. 10 b. 7 c. 3 d. 0