A cartel's profit-maximizing price is
a. on the demand curve at the quantity where marginal cost equals marginal revenue
b. on the demand curve where it intersects its marginal cost curve
c. the highest price possible
d. determined by using the cost-plus pricing model
e. where the kink in the demand curve occurs
A
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If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now
Indicate whether the statement is true or false
Claude's Copper Clappers sells clappers for $40 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $39, average variable cost is $25, and average total cost is $45 . To improve his profit/loss situation, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
In the early 1900s, Henry Ford introduced a
a. high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. b. high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. c. low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. d. low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.
A dominant strategy is:
A. when one strategy is chosen and cannot be changed without making at least one of the players worse off. B. when one strategy is chosen by a firm first and determines the best strategies of the other players that follow. C. when one strategy is always the best for a player to choose, regardless of what other players do. D. None of these statements is true.