The aggregate supply curve (short run) is upward-sloping because ________.
A. wages and other resource prices are flexible upward but inflexible downward
B. the price level is flexible upward but inflexible downward
C. wages and other resource prices match changes in the price level
D. per-unit production costs rise as the economy moves toward and beyond its full-employment real output
Answer: D
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In the United States, the unemployment rate for women is typically ________ than it is for men, and the typical woman earns ________ than typical man earns
A) higher; more B) higher; less C) lower; more D) lower; less
If Pizza at Home and Pizza in Your Fridge are two competing frozen pizza firms and Pizza at Home wants to make a threat to Pizza in Your Fridge more credible, they can do all of the following except which one?
A) take action to lower the firm's costs B) take action to increase the firm's capacity C) make Pizza in Your Fridge aware of Pizza at Home's plans D) keep Pizza in Your Fridge in the dark regrading Pizza at Home's plans
A group of firms, operating in collusion, incur costs of production of $15 per unit. The price that currently maximizes their profit is $19 . Knowing that potential competitors could enter the market with production costs of $17 per unit, what price are the colluders likely to charge? Why?
How is price fixing among firms treated under antitrust policy? Give two examples of legal actions against price fixing
What will be an ideal response?