Two duopoly firms that sell an identical good form a cartel. They decide to collude and fix the price of their good. In this prisoners' dilemma type situation, the likely outcome is
A) both will cheat.
B) neither one will cheat.
C) only one will cheat.
D) It is impossible to say.
A
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Jason wants to hire Maria to tutor him in economics. Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth
Maria has an opportunity cost per hour of $6 for the first, $9 for the second, $12 for the third, $15 for the fourth, and $18 for the fifth. The initial equilibrium price for tutoring is $15 an hour and hence Maria tutors Jason for 4 hours. Now, Maria realizes that she is the only economics tutor because all the other tutors have graduated. Because she is the only tutor, she has a monopoly and, as a monopolist, Maria decides to charge a price of $25 instead of $15 an hour. a. At the price of $25 an hour, how many hours will Maria tutor Jason? b. At the initial equilibrium price of $15 an hour, what was Jason's total consumer surplus and Maria's total producer surplus? c. At the price of $25 an hour, how many hours will Jason hire Maria to tutor him? What is Jason's total consumer surplus and Maria's total producer surplus? d. How does the sum of Jason's consumer surplus plus Maria's producer surplus compare at the initial equilibrium price of $15 an hour (part b) and at the new price of $25 an hour (part c)? Comment on any difference.
The securities, such as stocks or bonds, constitute a(n) ________ for the savers and a(m) ________ for the borrowers
A) asset; liability B) debt; assets C) liability; asset D) debt or an asset; liability or an asset
The tax you pay on your last dollar of income is called the
A. marginal rate of payment. B. average tax rate. C. marginal tax rate. D. marginal propensity to pay tax.
Refer to Figure 17.1. What is the output level where the average cost is at its minimum?
A. 7 units B. 6 units C. 8 units D. 9 units