Each firm in a cartel has an incentive to chisel because market price exceeds:
a. marginal cost.
b. average cost.
c. average variable cost.
d. average fixed cost.
a
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At any particular quantity on the TC, its slope will be
A. the same as the slope of the TVC. B. greater than the slope of the ray out of the origin to that point on the TC. C. smaller than the slope at the quantity on the TVC. D. greater than the slope at the quantity on the TVC.
Other factors held constant, a decrease in resource prices will shift the aggregate:
A. demand curve leftward. B. demand curve rightward. C. supply curve leftward. D. supply curve rightward.
When the supply curve of a resource is vertical, then the return to the resource owner is
A. pure economic rent. B. partly economic rent and partly opportunity costs. C. partly economic rent and partly profits. D. zero.
The multiplier can be calculated by dividing:
A. The initial change in spending by the change in real GDP B. The change in real GDP by the initial change in spending C. One by one minus the marginal propensity to save D. One by one minus the marginal propensity to invest