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Question
Prices under an ideal cartel situation will be equal to
A) monopoly prices.
B) competitive prices.
C) prices under monopolistic competition.
D) marginal cost.
Answer
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Related questions
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The Prisoner's Dilemma is an example of
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"Tying" is a form of price discrimination which involves a buyer
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When mark-up equals 50% and AC = MC, then demand elasticity will be
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If a product which costs $8 is sold at $10, the profit margin is
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Q:
The following are possible examples of price discrimination except
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Q:
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Q:
Porter's "Five Forces Model" is based on
A) the laws of supply and demand.
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D) the key factors affecting demand.
Q:
In the kinked demand curve model, the demand curve is ________ for price increases and ________ for price decreases.
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B) relatively inelastic; relatively elastic
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Q:
The main difference between perfect competition and monopolistic competition is
A) the number of sellers in the market.
B) the ease of exit from the market.
C) the difference in the firm's profits in the long run.
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Q:
When the slope of the total revenue curve is equal to the slope of the total cost curve
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Q:
A monopoly will usually produce
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Q:
Which of the following is true for a monopoly?
A) P = MC
B) P = MR
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When MR = MC
A) marginal profit is maximized.
B) total profit is maximized.
C) marginal profit is positive.
D) total profit is zero.
Q:
Which of the following correctly completes this statement? The monopolist's marginal revenue
A) will be greater than price.
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D) will be greater than total revenues.
Q:
A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
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In economic analysis, any amount of profit earned above zero is considered "above normal" because
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Which is a required characteristic of a perfectly competitive industry?
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B) repetition of various production tasks cause unit costs to decrease.
C) workers must learn new skills in order to improve.
D) it takes time to learn a new skill.
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Which of the following relationships implies that a firm's short-run cost function is linear?
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When a firm experiences increasing returns to scale
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The marginal cost will intersect the average variable cost curve
A) when the average variable cost curve is rising.
B) where average variable cost curve equals price.
C) at the minimum point of the average variable cost curve.
D) The two will never intersect.
Q:
As the U.S. population ages, the structure of the demand for food products will change with
A) an increase in the demand for red meat products and a decrease in the demand for fish and poultry.
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Q:
The Coase theorem states that, in the presence of cost externalities, an optimal equilibrium can be attained
A) with government taxation.
B) by prohibiting production.
C) by correctly defining property rights and through negotiation between the parties.
D) None of the above