The above figure shows the market for the three moving companies in a small nation
If the movers act as perfect competitors, what is the price per mile and the number of miles per year? If the movers collude and act as a single monopoly, what is the price per mile and the number of lines per year?
If the movers compete, production will be where the demand and supply curves intersect, 300 million miles of moving per year. The price will be 8¢ per mile. If the movers can successfully collude, then production is at the point where MR = MC, only 200 million miles of moving per year, and the price is 12¢ per mile.
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If the marginal cost curve is below the average variable cost curve
A. both average total cost and average variable cost are decreasing. B. average variable cost is less than average fixed cost. C. both average total cost and average variable cost are increasing. D. average total cost is increasing but average variable cost is decreasing.
The Malthusian model performs poorly in explaining economic growth after the
A) French Revolution. B) American Revolution. C) Industrial Revolution. D) Bio-technology Revolution.
After 1975, the U.S. economy continued to experience high inflation ________
A) mainly because the public expected policymakers to continue their expansionary efforts, and this led to increases in inflation expectations B) most likely of the cost-push kind C) until a very aggressive commitment to anti-inflationary monetary policy helped end this Great Inflation period D) all of the above E) none of the above
Within the framework of the AD/AS model, if consumers and investors become more pessimistic about the future direction of the economy, this will lead to
a. an increase in aggregate demand. b. a decrease in aggregate demand. c. an increase in long-run aggregate supply (LRAS shifts to the right). d. a reduction in the natural rate of unemployment.