Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00
B
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One of the main tools economists use to analyze strategic behavior is
A) the Herfindahl-Hirschman Index. B) game theory. C) cartel theory. D) the collusion index. E) dual theory, which is used to study duopolies.
Vertical contracts that aim to decrease retailer prices typically
a. Benefit the consumer, hurt the manufacturer and the retailer b. Benefit the manufacturer, hurt the consumer and retailer c. Benefits the consumers, manufacturers and retailers d. Hurts all the manufacturers, consumers and retailers
The time spent by students in college
a. leads to lower future wages b. is an investment in human capital c. decreases human capital by lowering work experience d. would be a positive compensating wage differential in markets for student labor e. increases as the wage rate rises
Cartels in the United States are
a. legal if price is competitively determined. b. legal if all firms in the industry agree to the terms of the cartel. c. legal if all conditions of the cartel are made public. d. illegal.