There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits. If they form a cartel, their inverse demand curve is

Refer to Figure 15-15. Why won't regulators require that Erickson Power produce the economically efficient output level?

A) because at the economically efficient output level, the marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit B) because Erickson Power will earn zero profit C) because there is insufficient demand at that output level D) because Erickson Power will sustain persistent losses and will not continue in business in the long run

Which of the following statements is true?

A. The prime rate is higher than the federal funds rate. B. The federal funds rate is higher than the prime rate. C. The prime rate is often the same as the discount rate. D. The federal funds rate and the prime rate are often the same.