The price is likely to be quite stable in the godfather model because
a. the market functions like a cartel
b. the other firms in the industry have cost advantages over the godfather
c. the godfather could decrease price below levels that other firms could afford
d. entry into the market is easy
e. all firms are maximizing profit anyway
C
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If a firm’s average cost is currently $150, and the marginal cost is $195, then the average cost is rising.
Answer the following statement true (T) or false (F)
If both prices decreases by 50%,
A) budget constraint will be unchanged. B) slope of the budget constraint will increase. C) slope of the budget constraint will decrease. D) budget constraint will shift outward in a parallel fashion.
If the government wants to decrease the quantity consumed of cigarettes 20%, what percentage of tax would they have to levy on cigarette consumption?
a. 20% b. 30% c. 40% d. 50%
The law of diminishing marginal utility implies that the marginal utility of my fifth hot dog is less than the marginal utility of my second soft drink, other things constant
a. True b. False