The firms in a market have decided not to compete with one another and have agreed to limit output and raise price
A) This practice is known as concentrating and is legal in the United States and Canada.
B) This practice is known as collusion and is illegal in the United States.
C) In this way firms take advantage of economies of scale.
D) This is an effective barrier to entry, but is illegal in the United States.
B
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The quantity of labor demanded by the firm is such that the
A) wage rate equals the marginal cost. B) wage rate equals the value of marginal product of labor. C) wage rate equals the marginal product of labor. D) marginal revenue equals the marginal product.
If Mort's House of Flowers sells one dozen roses to different customers at different prices, economists would consider this an example of
A) rational ignorance. B) price discrimination. C) price gouging. D) arbitrage.