A group of firms that agree to coordinate their production and pricing decisions to reap monopoly profit is called an oligopoly

Costs that change as output changes are called incremental costs

Indicate whether the statement is true or false

Before an uneven rise in prices Allan consumed five bread and six juice. After the price increase and with an increased welfare payment from the government Allan consumes four bread and seven juice

Does the government payment represent a true cost-of-living adjustment? A) Yes, if the two consumption bundles lie on the same indifference curve. B) Yes, if the second bundle yields more utility than the first. C) No, the first bundle is clearly preferred. D) Not enough information.