In 1982 the CEO of American Airlines spoke on the telephone to the CEO of Braniff Airlines. The CEO of American Airlines proposed that the two airlines fix prices. The CEO of Braniff Airlines rejected the proposal. The CEO of American Airlines:
A) was within his 1st Amendment right to free speech.
B) was in violation of the antitrust laws which prohibit price fixing.
C) was in violation of the antitrust laws which prohibit predatory pricing.
D) Both B and C are correct.
E) None of the above is necessarily correct.
E
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A monopolistically competitive firm's choice of output level is virtually identical to the choice made by
a. a perfectly competitive firm. b. a duopolist. c. a monopolist. d. an oligopolist.
A unique feature of oligopolies, when compared with other industry types, is:
A. low barriers to entry. B. diminishing marginal returns. C. standardized products. D. mutual interdependence.
Suppose that your firm's marginal cost of producing a pencil is 5 cents and the average cost of producing a pencil is 3 cents. If your firm is interested in minimizing average total costs, what should your firm do?
A. Increase production. B. Decrease production. C. Maintain production at the current level. D. Look for ways to increase fixed costs.
All of the following are income in kind EXCEPT
A. government provided food stamps. B. government provided medical aid. C. income received from family members. D. services produced in the home.