A member of a cartel like OPEC has an incentive to
A) support equal production quotas for each member.
B) argue for larger production quotas for each member of the cartel.
C) abide by its individual production quota.
D) agree to a low cartel production level and then produce more than its quota.
D
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When price is less than the firms' minimum average total cost, ________
A) new firms will enter the market B) existing firms will leave the market C) prices are likely to fall further D) firms' profits are likely to be maximum
One thing economists do to help them understand how the real world works is
a. make assumptions. b. ignore the past. c. try to capture every aspect of the real world in the models they construct. d. All of the above are correct.
Which of the following events could shift both the demand curve and the supply curve for a good?
a. A technological advance pertaining to the production of the good is observed.
b. Incomes of all buyers of the good increase.
c. The number of sellers of the good increases.
d. Everyone revises upward their expectation of next month’s price of the good.
When a tariff is imposed, the supply curve for the imported good
A. becomes perfectly inelastic. B. does not change. C. shifts downward and to the right. D. shifts upward and to the left.