Which of the following attitudes will be held by a typical firm in a typical cartel?
a. If I alone cheat, I'm better off; if everyone cheats, I'm worse off.
b. I can never do better for myself than by following agreed-upon cartel policies.
c. If everyone cheats, I'm better off and so is everyone else in the cartel.
d. If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.
a
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The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the firms' surplus?
A) area A B) area B C) area C D) area D E) area E
The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th ton of grain?
A) 16 cars per ton of grain B) 6 cars per ton of grain C) 3 cars per ton of grain D) 2 cars per ton of grain