Collusion is:
A. easy to maintain since firms always have an incentive to renege.
B. difficult to maintain since firms rarely agree on the terms.
C. easy to maintain since firms face similar cost curves.
D. difficult to maintain since firms always have an incentive to renege.
D. difficult to maintain since firms always have an incentive to renege.
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When consumers' incomes decline during a recession, they increase their consumption of instant coffee and reduce their consumption of other beverages. Therefore, instant coffee:
A. is a necessity because consumers buy more during a recession. B. has a negative income elasticity of demand. C. has an income elasticity of demand greater than zero but less than one. D. is normal.
After a price floor of $23 is placed on the market in the graph shown, which area represents consumer surplus?
A. A
B. A + B
C. A + B + C
D. A + B + C + D
A firm in a competitive market currently produces and sells 500 doorknobs for a price of $10 per doorknob. Which of the following events would decrease the firm's average revenue?
a. The firm increases its output above 500 doorknobs. b. The firm decreases its output below 500 doorknobs. c. The market price of doorknobs rises above $10. d. The market price of doorknobs falls below $10.
The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions
Indicate whether the statement is true or false