In the short run, average fixed cost is constant as output increases

Which of the following helps in preventing firms in the U.S. from forming collusive agreements?

A) The low demand faced by colluding firms B) The antitrust policy of the government C) The high rate of corporate income taxes D) The low profit earned by firms after colluding

Consider a market in which there is an import tariff. Which of the following is TRUE?

A) The lost consumer surplus equals the gain in producer surplus plus the government revenue plus the deadweight loss. B) The lost consumer surplus equals the gain in producer surplus. C) The lost consumer surplus equals the gain in producer surplus plus the government revenue. D) The lost consumer surplus plus the deadweight loss equal the gain in producer surplus plus the government revenue.