When firms in an industry are selling similar products, and they agree to share the market,
A) each firm earns a profit even though marginal cost is greater than marginal revenue.
B) each firm secures a net revenue about as large as it would have received if it were the only seller.
C) they try to keep each firm's price above its marginal cost.
D) they tend to produce higher prices and larger output.
E) the agreement will enforce itself because none of the firms will have an interest in triggering a competitive struggle.
C
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Using the data in the table above, what is the value of GDP?
A) $13,516 billion B) $10,679 billion C) $9,541 billion D) $8,403 billion
A nation should specialize in the production of the product for which it has a(n):
a. absolute advantage. b. exchange rate. c. specialization. d. comparative advantage. e. terms of trade.