In an oligopoly, producers' agreements to restrict output tend to be unstable because each firm has an incentive to
A. raise its price above the cooperative price.
B. establish competitive price and output levels.
C. produce more than its output quota.
D. lower both its price and its output.
Answer: C
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In the above figure, a perfectly competitive market will have a price of ________, and a single-price monopoly will have a price of ________
A) P1 and quantity of Q1; P2 and quantity of Q2 B) P2 and quantity of Q2; P1 and quantity of Q1 C) P3 and quantity of Q3; P1 and quantity of Q1 D) P2 and quantity of Q2; P3 and quantity of Q1 E) P2 and quantity of Q1; P1 and quantity of Q1
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What will be an ideal response?
Explain the conditions that are met when a consumer has found the best affordable combination of goods to buy. (Use the terms budget line, marginal rate of substitution, and relative price in your explanation.)
What will be an ideal response?
The business cycle matters for unemployment because:
A. it affects the demand for labor. B. it affects the supply of labor. C. Both of these are true. D. Neither of these is true.