A cartel might fail because
A) it does not control enough of the output in a market to raise prices enough.
B) there is an incentive for members to cheat.
C) too many firms leave the cartel, causing the cartel price to fall.
D) All of the above.
D
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Which of the following is included in the government expenditure component of the expenditure approach to GDP?
A) state government expenditure on local schools B) transfer payments C) changes in inventories D) taxes
A country specializes in the production of goods for which it has a comparative advantage, so
A) some producers and consumers win, some lose, but overall the gains exceed the losses. B) all producers win. C) all consumers win. D) producers win, consumers lose, but overall the gains exceed the losses.
The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. At Kaffenia's efficient quantity of chocolate
A) total consumer surplus is zero. B) total producer surplus is zero. C) the sum of consumer surplus and producer surplus is zero. D) the sum of consumer surplus and producer surplus is maximized.
It's logical, it's a rule of thumb, it's an economic guideline: As long as MR > MC, and the firm responds by increasing the quantity it produces,
a. profit will eventually fall to zero b. profit will increase c. profit will decrease d. profit will remain unchanged e. the firm will minimize loss