A cartel finds it difficult to act as a monopolist because the products sold by each firm in a cartel are slightly differentiated

Refer to Figure 2-6. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?

A) 8 thousand wrenches B) 30 thousand wrenches C) 23 thousand hammers D) 0 hammers

A newspaper headline asserts: "Falling Demand Pushes Down Housing Prices." This headline

A) incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change. B) incorrectly implies that the price of housing will rise when demand increases. C) incorrectly implies that more housing will be demanded at higher prices. D) correctly implies that a decrease in demand will decrease the market clearing price.