To maximize joint profits, the members of a cartel have to determine the level of industry output by setting marginal revenue qual to the cartel’s joint marginal costs of production. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
There is considerable evidence to support the assertion that legislated input combinations have reduced the costs of production in affected industries. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In a closed economy the marginal propensity to consume is 0.60 and the marginal propensity to invest is 0.10. What is the size of the multiplier? A) 1.33 B) 2.33 C) 3.33 D) 0.70 ANSWER C
Date: September 10th, 2020
Labor resistance can be a major impediment to increased productivity in many firms. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
For a linear demand function, slope and the price elasticity of demand are equal. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume a cartel that consists of two firms has determined its profit-maximizing level of output and must now decide how to allocate total output between the two firms. Assuming firm A’s marginal costs are less than firm B’s marginal costs, firm A should produce a smaller share of total output than firm B. Indicate whether […]
Date: September 10th, 2020
One of the major motivations for labor resistance to productivity enhancing changes in a production process is the resulting threat to job security. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When demand is perfectly inelastic with respect to price, the demand curve is horizontal. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Because cooperation dominates noncooperation as a strategy for maximizing profits, cheating is rarely if ever an issue that cartels have to contend with. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume that in the market for plasma TVs there is an increase in supply. The result will be: A) an increase in equilibrium price and quantity. B) a decrease in equilibrium price and quantity. C) an increase in equilibrium quantity and uncertain effect on equilibrium price. D) a decrease in equilibrium price and increase in […]
Date: September 10th, 2020
