If the government stops enforcing its collusion laws and oligopolies are now able to collude, they will ________ the price charged and ________ the total output produced.
A. decrease; increase
B. decrease; decrease
C. increase; increase
D. increase; decrease
Answer: D
You might also like to view...
How does an import quota differ from an equivalent tariff?
Countries that export a diversified selection of export products do not seem to be at much risk of experiencing immiserizing growth.
Answer the following statement true (T) or false (F)
The Cakery Bakery sells 200 muffins at a price of $2 per muffin. Its explicit costs for producing 200 muffins are $350. If the bakery is earning a normal rate of return, then its implicit costs must be
A. $0. B. $50. C. $350. D. $400.
Refer to the information provided in Figure 6.7 below to answer the question(s) that follow.
Figure 6.7Refer to Figure 6.7. Along budget constraint AB, the price of good X is $25 and the price of good Y is $18. If the price of Y decreases to $14, the budget constraint will
A. shift in parallel to AB. B. pivot out at point A. C. pivot in at point A. D. pivot in at point B.