Consider Figure 8.9. If Becky and David could coordinate their decisions, then:
A. they would each earn profits of 100.
B. they would both choose to charge a low price and earn profits of 90 each.
C. they would both choose to charge a high price and earn profits of 90 each.
D. they would both choose to charge a high price and earn profits of 70 each.
Answer: C
You might also like to view...
The reason computers have not yet replaced trading floors can be attributed to
A) lack of sellers. B) lack of buyers. C) lack of liquidity. D) lack of technology.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
If both Art and Silvia worked full-time producing beef, how many pounds of beef can they produce per year?
A. 2,000 pounds B. 4,000 pounds C. 8,000 pounds D. 6,000 pounds
Production costs to an economist:
A. consist only of explicit costs. B. reflect opportunity costs. C. never reflect monetary outlays. D. always reflect monetary outlays.
If quantity supplied exceeds quantity demanded, there is a tendency for:
A. price to rise to restore equilibrium. B. price to fall to restore equilibrium. C. the demand curve to shift to the right to restore equilibrium. D. the demand curve to shift to the left to restore equilibrium.