The minimum price the firm would accept in the long run would be
A. $25.
B. $50.
C. $70.
D. $80.
B. $50.
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When firms in an industry reach an agreement to fix prices, divide up market share, or otherwise restrict competition, they are practicing the strategy of
A. price leadership. B. collusion. C. interindustry competition. D. limit pricing.
The above table gives data on two variables. If these data were graphed, their relationship would
A) be a straight line. B) be a curved line. C) show a negative relationship. D) nonexistent.
Banks differ from other types of businesses because banks: a. earn profits
b. combine economic resources to produce services. c. can go out of business. d. can create money. e. are regulated by the government.
____________ regulation is based on setting the price of, say, water or electricity, at the average cost of production while allowing a normal profit for the firm.
a. Price cap b. Cost-plus c. Fixed price d. Bundling