If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure above, then it will produce
A) 2 million units.
B) 3 million units.
C) 4 million units.
D) 5 million units.
C
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If a large fraction of the capital stock in the U.S. stopped functioning, it would: a. Shift the short run aggregate supply curve to the left
b. Shift the long run aggregate supply curve to the left. c. Shift both the short run aggregate supply curve and long run aggregate supply curves to the left. d. Do none of the above
Katz, Goborg, and Rimmet are oligopolists in the tractor industry. They face intense pressure from foreign tractor imports. Which of the following actions could be considered collusive?
a. Goborg and Rimmet collaborate on a pricing strategy to boost their sales. b. Katz hires lobbyists to convince the government to raise tariffs on imported tractors. c. Rimmet and Goborg each lower their prices after Katz lowers its prices. d. Goborg deliberately lowers its prices to try to steal customers from Rimmet and Katz.
If the multiplier = 2.5, the MPC would be
A) 0.25. B) 0.4. C) 0.6. D) 0.75.
If real GDP grows at a rate of 6 percent and population grows at a rate of 2 percent, then real GDP per person grows at a rate of
A) -3 percent. B) 8 percent. C) 2 percent. D) 4 percent. E) 0.5 percent.