Collusion is most likely to occur in those oligopolies in which firms have vastly different cost structures
a. True
b. False
B
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In a market with a Herfindahl-Hirschman Index of 2,000, according to their guidelines will the Department of Justice challenge a merger that would increase the index by 100?
What will be an ideal response?
Suppose that a negative income tax was created that set a minimum income for a family of $5,000 per year and had a marginal tax rate of 33 percent. What is the break-even level of income? If a person earned $5,000 . what would the after-tax income level be? If the earnings were $10,000 . what would the after-tax income be?
Output combinations that lie inside the production possibilities curve are characterized by efficient use of resources.
Answer the following statement true (T) or false (F)
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $6, then the firm will:
A. be better off producing 150 units than shutting down. B. be better off exiting the market and using the resources for other production activities. C. be better off shutting down in the short run and waiting until the market price rises above $10. D. None of these