Relative to a profit-maximizing competitively organized industry that is producing 6,000 units of output at a price of $7 per unit, firms acting collusively under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. more than 6,000; more than $7
B. 6,000; $7
C. less than 6,000; more than $7
D. less than 6,000; less than $7
Answer: C
Economics
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The above figure shows the isoquants for producing steel. Increasing returns to scale are
A) present when producing less than 10,000 tons. B) present when producing less than 20,000 tons. C) present when producing less than 30,000 tons. D) never present.
Economics
If the demand for cucumbers falls when the price of tomatoes rises, then we know that tomatoes and cucumbers are:
A. complements. B. inferior goods. C. substitutes. D. normal goods.
Economics