According to these relationships, the competitive output level arises where
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q;
MSB = 30 – 0.3Q; MEB = 0.
a. QC = 25 b. QC = 20 c. QC = 40 d. none of the above
c. QC = 40
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Among the following cases, the opportunity cost of crowding out is the smallest when the government spends dollars: a. staffing the Internal Revenue Service hotline
b. printing stationery for new members of Congress. c. placing photographs of the new President in government and diplomatic offices worldwide. d. on Social Security benefits. e. on new interstate highways.
Which of the following is a difference between a cartel and a monopoly?
a. A cartel will seek to decrease production in order to increase profits, whereas a monopoly will seek to increase production in order to increase profits. b. A cartel is a price taker, whereas a monopoly is a price setter. c. The members of a cartel each have an incentive to cheat on the agreed-upon quantity and price, whereas a monopoly has no such incentive. d. The members of a cartel sell homogeneous products, while a monopoly sells differentiated products.