Goods A and B are substitutes. If the price of good A falls, the marginal revenue product of good B
A) will not change.
B) will shift out.
C) will become more inelastic.
D) will shift in.
Answer: D
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A cartel usually has a collusive agreement to
A) restrict output. B) boost output. C) lower the price. D) increase the number of firms in the industry.
If the government imposes a price floor that is higher than the market clearing price, then
A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.
The first piece of antitrust legislation in the United States to deal with price discrimination was the
a. Clayton Act b. FTC Act c. Cellar-Kefauver Act d. Robinson-Patman Act e. Sherman Antitrust Act
A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
a. inventory stocks are building up. b. inventory stocks are being depleted. c. their profits are negative. d. many of their workers have little to do.