A cartel is a group of firms that
A) produce differentiated products.
B) produce products that are complements.
C) agree to restrict output to boost their profit.
D) agree to boost output to boost their profit.
Ques. 2Which of the following is ALWAYS true for a profit-maximizing single-price monopolist?
A) P = MC
B) P = MR
C) MR = MC
D) MC = ATC
Ques. 3Total fixed cost is the sum of all
A) costs of the firm's fixed factors of production.
B) costs associated with the production of goods.
C) costs that rise as output increases.
D) the marginal costs of the different factors of production.
Ques. 4Unlimited liability is NOT a characteristic of
A) corporations.
B) partnerships.
C) proprietorships.
D) the market economy today.
Ques. 5National defense is an example of a ________.
A) public good
B) natural monopoly good
C) common resource
D) private good
Ques. 6The table above shows output and costs of Evan's Subs, a typical perfectly competitive firm in a local market for sandwiches. Evan's fixed cost is 9 per hour. The current market price of a sandwich is 6. What is Evan's shut-down price?
A) 6 per sandwich
B) 4 per sandwich
C) 3 per sandwich
D) 5 per sandwich
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