Consider that a cartel is functioning at full effectiveness. If the cartel's marginal cost of production increases, the cartel's profit-maximizing price
A. also increases.
B. initially decreases and then increases.
C. decreases.
D. remains constant.
Answer: A
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Which of the following may not be true for "multiple exchange rates"?
A) They are a form of protectionism. B) They try to improve a country's BOP. C) They use different exchange rates for different international transactions. D) They are less costly to administer than floating exchange rates.
Figure 19.1 shows the actual behavior of inventories. Based on the figure, in which month is the discrepancy between the actual level of inventories and the desired level of inventories likely to have been smallest?
A) March 2012 B) September 2009 C) March 2010 D) September 2010
A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, how much is he being paid in economic rent?
A) $2.0 million B) $100,000 C) $1.9 million D) $2.1 million
Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number of Cakes Per DayTotal Cost Per Day0$1001$1802$2203$3004$4005$5206$660 If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then at her profit-maximizing level of output, Sarah will earn a ________ of ________ per day.
A. loss; $15 B. profit; $285 C. loss; $100 D. profit; $15