Author Question: A cartel: a. is a group of firms formally agreeing to control the price and the output of a ... (Read 66 times)

CQXA · **on:** Jun 30, 2018

A cartel:
a. is a group of firms formally agreeing to control the price and the output of a product.
b. has as its primary goal to reap monopoly profits by replacing competition with cooperation.
c. is illegal in the United States, but not in other nations.
d. all of these.

Question 2

Which of the following is true about average fixed cost?
a. Average fixed cost has a U-shape, and marginal cost crosses average fixed cost at its minimum point.
b. Average fixed cost does not vary as output increases.
c. Average fixed cost is the difference between marginal cost and average total cost.
d. Average fixed cost is total fixed cost divided by the quantity of output produced, and it declines steadily as output increases.