Cartels can more easily detect cheating by cartel members if the products sold by each member are largely homogeneous
As product quality varies, the observed prices charged by cartel members may be due to differences in the products, or they may be due to cheating. Which of the following goods would more difficult to monitor for potential cheating? A) Aluminum ingots
B) Industrial concrete
C) Steel beams
D) Luxury yachts
D
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The long-run average cost curve
A) is the sum of a firm's short-run average cost curves. B) shows the lowest average cost facing a firm as it increases output changing both its plant and labor force. C) initially rises when output increases and then falls when output increases. D) always falls as output increases. E) always rises as output increases.
A consequence of the economic problem of scarcity is that
A. The production of goods and services must be controlled by the government. B. Choices have to be made about how resources are used. C. The production possibilities curve is bowed outward. D. There is never too much of any good or service produced.