When the demand curve is vertical and the supply curve is upward sloping,:
a. a rise in the input price that increases marginal cost by $1, decreases the firm's profit by $1.
b. a drop in the input price that lowers the marginal cost by $1, doubles the firm's profit.
c. a drop in the input price that lowers the marginal cost by $1, decreases the output price by $1.
d. a rise in the input price that increases the marginal cost by $1, doubles the output price.
C
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Which of the following statements about markets is not true?
a. A market is an impersonal mechanism. b. Markets coordinate the independent decisions of buyers and sellers. c. Markets reduce the transaction costs of exchange. d. More specialized markets are generally found in urban areas. e. All markets provide the same amounts of information.
The Celler-Kefauver Act made it illegal to:
a. provide selective discounts. b. set prices below marginal cost. c. conspire to collude. d. buy with cash a competitor's patents, plants, or equipment. e. price discriminate.