The above figure shows the reaction functions for two pizza shops in a small isolated town. Collusion would result in
A) each firm producing 25 pizzas.
B) each firm producing 40 pizzas.
C) the firms splitting the production of 100 making 50 pizzas each.
D) firm A monopolizing the market by selling 50 pizzas.
C
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Which of the following displays rivalry and excludability in consumption?
A) public goods B) private goods C) quasi-public goods D) common resources
A devaluation of the home currency
A) makes foreign goods and services cheaper relative to those sold at home. B) makes domestic goods and services more expensive relative to those sold abroad. C) decreases demand and output. D) increases demand for domestic goods and services. E) increases output and makes domestic goods and services cheaper relative to those sold abroad.
A pizza parlor's rent is
A) sunk in the long run. B) fixed in the long run. C) avoidable in the short run. D) variable in the short run.
When economic profits are zero, accounting profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.