If two duopolists can stick to a cartel agreement to boost their prices, then both
A) earn greater profits than if they did not collude.
B) price at marginal cost.
C) price below average total cost.
D) decrease their economic profits.
E) increase their production so that each produces more than if they did not collude.
A
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The output level is constant along any isoprofit line.
Answer the following statement true (T) or false (F)
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) there will be a shortage of polo shirts. B) producer surplus will fall from $13 to $3. C) the marginal cost of producing the third polo shirt will increase to $25. D) consumers will buy no polo shirts.
The concept of economies of scale becomes especially relevant to international trade when it enables
a. numerous small producers to supply the entire country. b. one or two large producers to supply the entire country. c. numerous large producers to supply the entire country. d. one or two small producers to supply the entire country.
If two families are equally situated except that one rents and the other owns their home, the existing tax system will lead to
a. vertical inequity. b. equal treatment of both. c. horizontal inequity. d. equal burden sharing.