If five firms of similar sizes join to form a cartel, then it is most likely that
A) they will charge a common, lower market price.
B) they will collectively produce less than before.
C) all five firms will earn the same profits as before.
D) all five firms as a group will have falling profits, but increased output.
Answer: B
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Which of the following statements is TRUE?
A) A perfectly competitive market produces more output and charges a lower price than a single-price monopoly. B) A perfectly competitive market produces more output and charges the same price as a single-price monopoly. C) A perfectly competitive market produces less output and charges a lower price than a single-price monopoly. D) A perfectly competitive market produces less output and charges the same price as a single-price monopoly.
Wages often respond slowly to changes in output
a. True b. False
A consumer who has chosen the right mix of goods and services to maximize his or her utility is said to have achieved
A) consumer equilibrium. B) consumer benefit. C) consumer surplus. D) consumer optimum.
A purely competitive firm is in short-run equilibrium and its MC exceeds its ATC. It can be concluded that:
A. this is an increasing-cost industry. B. the firm is realizing a loss. C. the firm is realizing an economic profit. D. firms will leave the industry in the long run.