In which of the following industries would we expect collusion to be most effective?
a. retail gasoline, where most gas is sold by a large number of small dealers
b. crude oil production, where most oil is sold by a small number of large sellers
c. housing construction, an industry dominated by local firms that produce unique products
d. soybean production, where there are large numbers of farmers in many countries
B
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In the production function for new ideas and technology in ________, a decrease in the labor force will ________ the growth rate of technological change
A) the AK growth models; decrease B) the AK growth models; increase C) the two-sector growth model; decrease D) the two-sector growth model; increase
If market price is greater than or equal to the minimum of AVC but below the minimum of AC, then
A) the firm will shut down. B) the firm will operate because its loss is less than if it shut down. C) revenue is lower than variable costs. D) profit is positive and so the firm will operate.
Which of the following is accurate regarding income statistics?
a. Current annual income is also an accurate indicator of relative economic status for the same individual over a longer period such as a decade or lifetime. b. When there is substantial income mobility, one's current position in the income distribution will not be a very good indicator as to what one's position will be a few years in the future. c. Recent studies indicate that there is a strong positive relationship between the relative income position of a family and the relative income position of their children and grandchildren. d. Even though annual income data camouflage the fact, high-income earners generally maintain their status year after year, while those with low current incomes tend to stay poor year after year.
Madison has an income of $50, which she spends on Pizza (P) and soft drinks (S). Her marginal rate of substitution is MRSPS = S/P. The price of pizza (PP) is $5 and the price of soft drinks (PS) is $2.50. Finally, the formula for her indifference curves is given by S = 2U/P (a) Find Madison's uncompensated demand curve for pizza. (b) Find Madison's compensated demand curve for pizza
What will be an ideal response?