Cartels are more successful when members play by the rules and the industry faces an inelastic demand.
Answer the following statement true (T) or false (F)
True
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Consider the two graphs above. Suppose that the domestic currency is expected to strengthen. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Consumer surplus can be used to compare the effects of any of the following except for different
a. market structures b. tax structures c. production technologies, such as capital-intensive versus labor-intensive d. public programs e. levels of medical care benefits
If a monopolist is maximizing its profits, we know that it has:
A. maximized total revenue. B. maximized marginal revenue. C. minimized total cost. D. equated marginal cost and marginal revenue.
When economists want to obtain a measure of the responsiveness of quantity demanded to changes in price, they use
A) the slope of the demand curve. B) the price elasticity of demand. C) the unit change in quantity demanded. D) the cross-price elasticity of demand.