In a cartel,
a. all firms produce the same amount of output and earn the same profit
b. all firms produce the same amount of output but earn different amounts of profit because their costs differ
c. firms produce different amounts of output but earn the same profit
d. firms with higher average cost produce more so that all firms earn the same profit
e. firms with lower average cost often earn higher profits
E
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Refer to Figure 5-2. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations
What will be an ideal response?
Out of the three products, which product has a unitary elastic demand curve?
a. Cigarettes b. Alcohol c. Sodas d. None of the above
What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.
Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate
a. True b. False Indicate whether the statement is true or false