Collusion occurs when firms ________
A) charge a price equal to their marginal cost of production
B) conspire to set the quantity they produce or the prices they charge
C) compete with each other by setting a price slightly lower than the rival's price
D) compete with each other by differentiating their products
B
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Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F, y-axis) and $100 is the price of shelter (S, x-axis). How much food can Joe buy if he buys one unit of shelter?
A) 2 units B) 200 units C) 250 units D) 400 units
If Stimpson University increases tuition in order to increase its revenue, it will:
a. not be successful if the demand curve slopes downward. b. be successful if demand is elastic. c. be successful if demand is inelastic. d. be successful if supply is elastic. e. be successful if supply is inelastic.
Economists refer to the simple relationship between consumption and disposable income as:
a. autonomous consumption. b. the marginal propensity to consume. c. the absolute disposable income hypothesis. d. disposable income. e. the consumption function.
The performance of diversified companies
A) is always greater than the performance of more narrowly focused firms. B) can be seen in greater economic profits. C) usually is greater than the overall economy. D) often simply mirrors the general economy.