Which of the following organizations or types of organizations is most likely to have a legal, formal cartel agreement?
A. The American Medical Association (AMA).
B. The United Auto Workers (UAW).
C. The American Association of Residential Roofers (AARR).
D. None of the above are likely to have legal, formal cartel agreements.
Answer: B. The United Auto Workers (UAW).
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Don's Pasture Apple Cider Company buys four inputs: apples, glass bottles, apple presses, and computers for record keeping. If the company decides to become more vertically integrated, it will
a. probably start growing apples next b. probably start making glass bottles next c. probably start making apple presses next d. probably start making computers next e. have to grow apples and make glass bottles, apple presses, and computers
Maureen left her teaching job, which paid $30,000 per year, and invested $20,000 of her retirement fund (which was earning 10 percent interest) in a new real estate business. Her accountant predicted a $60,000 revenue the first year. Her husband, an economist, forecast her profit to be
A. $10,000. B. $28,000. C. $32,000. D. $60,000.
Why is the price of a scarce exhaustible resource in a competitive market above the marginal cost of providing a unit of the resource?
What will be an ideal response?
In order to earn an economic profit, a firm needs to charge a price in excess of
A) accounting average cost. B) normal average costs. C) economic average cost. D) long-run fixed costs.