Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster
a. True
b. False
Indicate whether the statement is true or false
True
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What makes it extremely difficult for cartels to function effectively without government assistance?
A) Cartel members cannot agree among themselves on the optimum price because all have different costs. B) High prices encourage cartel members to offer discounts, and they attract new entrants to the industry. C) Marginal cost will not equal marginal revenue except at output levels beyond the cartel's capacity. D) Public interest considerations usually require an output greater than the cartel's net revenue maximizing output. E) The hostility of the public to price exploitation makes it difficult for the cartel to defend itself against the consequences of popular hostility.
A "long-run exploitable Phillips curve" refers to a Phillips curve that in the long run is ________ rather than ________
A) downward sloping; vertical B) vertical; horizontal C) horizontal; upward sloping D) upward sloping; vertical
A monopolist has equated marginal revenue to zero. The firm has:
A) maximized profit. B) maximized revenue. C) minimized cost. D) minimized profit.
Input efficiency:
B. is not a requirement of Pareto efficiency in a production economy. C. exists when it is possible to produce more of one good and at least as much of every other good using the same inputs. D. is the same as efficient efficiency.