Assume a cartel that consists of two firms has determined its profit-maximizing level of output and must now decide how to allocate total output between the two firms
Assuming firm A's marginal costs are less than firm B's marginal costs, firm A should produce a smaller share of total output than firm B. Indicate whether the statement is true or false
FALSE
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If two countries engage in Free Trade following the principles of comparative advantage, then
A) neither relative prices nor relative marginal costs (marginal rates of transformation-MRTs) in one country will equal those in the other country. B) both relative prices and MRTs will become equal in both countries. C) relative prices but not MRTs will become equal in both countries. D) MRTs but not relative prices will become equal in both countries. E) trade will be unrestricted, regardless of relative costs and MRTs.
Suppose aggregate demand shifts to the left and policymakers want to stabilize output. What can they do?
a. repeal an investment tax credit or increase the money supply b. repeal an investment tax credit or decrease the money supply c. institute an investment tax credit or increase the money supply d. institute an investment tax credit or decrease the money supply
In economic terminology, the accumulated training and education that workers receive that increases their productivity is referred to as
A) entrepreneurship. B) human capital. C) labor. D) physical capital.
In monopolistically competitive industries, the market sets the price.
Answer the following statement true (T) or false (F)