Two isoquants, which represent different output levels but are derived from the same production function, cannot cross because
A) isoquants represent different utility levels
B) this would violate a technical efficiency condition
C) isoquants are downward sloping
D) additional inputs will not be used by profit maximizing firms if those inputs decrease output
E) Both B and D are true.
E
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A cartel is defined to be
A) any oligopolistic industry with fewer than 4 firms. B) a form of oligopoly in which firms agree to sell at different prices like in monopolistic competition. C) a form of oligopoly in which firms formally agree to establish a common strategy, often a common price, in effect acting like a monopoly. D) a form of oligopoly in which firms agree to compete with each other on an equal basis.
Which of the following are most likely substitute goods?
A. peanut butter and jelly B. cooking oil and butter C. pizza and beer D. trucks and gasoline