Author Question: In a price leadership oligopoly model, a. a cartel of leading firms determines price and industry ... (Read 71 times)

jazziefee · **on:** Jun 30, 2018

In a price leadership oligopoly model,
a. a cartel of leading firms determines price and industry output.
b. the industry in consortium with the government determines price and output.
c. one firm is the price leader and all other firms follow.
d. the firms abandon a profit-maximizing goal.
e. firms do not operate where MR = MC.

Question 2

Which of the following is an implication of the law of diminishing returns?
a. Total output will decline as more workers are hired.
b. In the long run, average total cost will eventually decline as output is expanded.
c. In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost.
d. A doubling of all inputs will lead to more than a doubling of output.