Author Question: Refer to Figure 13-13. Economies of scale are exhausted at which output level? A) Q1 units B) Q2 ... (Read 56 times)

mp14 · **on:** Jun 29, 2018

Refer to Figure 13-13. Economies of scale are exhausted at which output level?

A) Q1 units B) Q2 units
C) Q3 units D) more than Q1 units

Question 2

Refer to Table 14-2. For each firm, is there a better outcome than the current situation in which each firm charges the low price and earns a profit of 7,000?

A) Yes, the firms can implicitly collude and agree to charge a higher price.
B) Yes, each firm can implicitly agree to increase output and not to deviate from a low price.
C) No, there is no incentive for each firm to consider any other strategy.
D) No, any other strategy hurts consumers.