Which of the following will cause a cartel to be unstable?
a. a small number of firms
b. high barriers to entry
c. sharply differentiated products
d. lack of legal constraints
c. sharply differentiated products
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For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be
A) 4 units per year and the price will be $6. B) 4 units per year and the price will be $4. C) 6 units per year and the price will be $4. D) None of the above answers is correct.
In a perfectly competitive market, buyers are completely aware of the asking prices of sellers but sellers are unaware of the bids placed by buyers
Indicate whether the statement is true or false
Classical theory advocates ________ policy and Keynesian theory advocates ________ policy
a. fixed wages; flexible wages b. nonintervention; intervention c. active; nonstabilization d. active; passive
Suppose a monopsonist must pay $10 per hour to attract 10 workers. If the same monopsonist must raise its wage to $11 per hour to attract the 11th worker, what is its marginal factor cost for labor?
A. $121 per hour. B. $11 per hour. C. $21 per hour. D. $10 per hour.