A cartel maximizes industry profit by
a. eliminating quotas
b. producing at the kink in its demand curve
c. producing where MR = MC
d. cutting production costs to become more efficient
e. producing more output than a monopoly would
C
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Suppose an economy has no income taxes or imports. If the MPC is 0.75, what does the expenditure multiplier equal?
What will be an ideal response?
Macroeconomics studies economywide issues like inflation and unemployment
a. True b. False Indicate whether the statement is true or false
If an economy produces 1,000 units of output with a price level of $5 and the money supply (M) is $1,000, velocity is:
A. 5. B. 200. C. 50. D. 2.
According to the graph shown, if the price were $5 a:
A. shortage would exist, signaling buyers to bid up the price. B. surplus would exist, signaling sellers to drop their price. C. surplus would exist, signaling buyers to bid up the price. D. shortage would exist, signaling sellers to leave the market.