If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel
Indicate whether the statement is true or false
False. The Cournot duopolists produce more at a lower price than a cartel. Thus, social welfare is lower with a cartel.
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The owner of Speedee Copy Center calculates that purchasing a new $13,000 color copier would return $1800 a year after payment of all expenses besides interest payments on borrowing $13,000
What is the maximum interest rate that makes purchasing the copier profitable? A) 13.84 percent. B) 7.22 percent. C) 8.62 percent. D) 12.16 percent.
If real GDP declines for at least one-half year, the economy is experiencing a:
a. depression. b. decline. c. recession. d. growth recession. e. deflation.
Marginal cost
A) cuts average variable cost and average fixed cost at their lowest point. B) cuts average variable cost and average total cost at their lowest point. C) rises and then falls. D) is the mirror image of marginal product.
Which of the following is not an example of a factor of production?
a. labor b. interest c. land d. capital