Refer to Table 14-8. If the firms cooperate, what prices will they select?
A) Brawny Juice will select a low price; Power Fuel a high price.
B) Both firms will select a high price.
C) Brawny Juice will select a high price; Power Fuel a low price.
D) Both firms will select a low price.
B
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Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that
A) supply will increase until quantity demanded equals quantity supplied. B) price will increase until quantity demanded equals quantity supplied. C) demand will decrease until quantity demanded equals quantity supplied. D) there will be no change in the price since the market is in equilibrium.
What happens to consumer surplus as price falls along a given demand curve?
a. It always increases. b. It always decreases. c. It never changes. d. It increases only if price increases just a little. e. It depends on the elasticity of demand and supply.