The ABC Nail Company has entered into a collusive agreement with the other firm in the industry, the DC Nail Company. What occurs in the nail industry if ABC decides to cheat on the agreement?
A) ABC lowers the price of its nails.
B) The total industry output increases.
C) The total profits in the nail industry will decrease.
D) All of the above answers are correct.
D
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When Jack consumes the first bottle of water, his utility increases by 20 utils. The second bottle of water increases his utility by 18 utils, and the third bottle of water increases his utility by 15 utils. This implies that the marginal utility of the second bottle of water is _____
a. 15 utils b. 18 utils c. 20 utils d. 24 utils
Jill, a U.S. citizen, uses some euros to purchase a bond issued by a French vineyard. This exchange
a. decreases U.S. net capital outflow. b. increases U.S. net capital outflow by more than the value of the bond. c. increases U.S. net capital outflow by the value of the bond. d. does not change U.S. net capital outflow.
Economic rent is generally associated with
A. high wages. B. low wages. C. both high and low wages. D. neither high nor low wages.
To determine the optimal method of production for a good or service, a perfectly competitive firm needs to know all of the following except
A. the prices charged by its rivals. B. the technologies of production that are available to the firm. C. the prices of inputs. D. the market price of output.