Two cities face identical prices for their housing. City A decided to be a pollution free city Clean ...

Two cities face identical prices for their housing. City A decided to be a pollution free city Clean town and all the factories would locate in city B Smogville, we expect the prices of housing in city B Smogville to
 a. increase
 b. decrease
 c. stay the same
 d. none of the above

QUESTION 2

In an auction where the bidders values are 740, 700, 660, 650, 400, 325 and 300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid be in this auction?
 a. 741
  b. 701
  c. 651
  d. 631

QUESTION 3

Two cities face identical prices for their housing. City A decided to be a pollution free city Clean town and all the factories would locate in city B Smogville, we expect the prices of housing in city A Clean town to
 a. increase
 b. decrease
 c. stay the same
 d. none of the above

QUESTION 4

In an auction where the bidders values are 400, 500, 650, 800 and 850, the highest two bidders form a bid-rigging cartel. What would have the winning bid been if there was no cartel?
 a. 501
  b. 651
  c. 801
  d. 846

QUESTION 5

In the long run, in a competitive industry
 a. economic profits are zero
  b. firms break even
 c. price equals average cost
  d. all of the above