This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Using the figure above, which of the following statements are correct? i. When 3 haircuts are ... (Read 52 times)

daltonest1984

  • Hero Member
  • *****
  • Posts: 536
on: Jun 29, 2018
Using the figure above, which of the following statements are correct?
 
  i. When 3 haircuts are produced, the firm's ATC is 10.
  ii. If the firm charges each customer the same price for a haircut, the price of a haircut is 14.
  iii. The firm is NOT a perfect competitor.
  A) i only
  B) ii only
  C) i and ii
  D) i and iii
  E) i, ii, and iii

Question 2

OPEC, the Organization of Petroleum Exporting Countries, was formed in Baghdad in 1960. Since its formation, this cartel has suffered from a major problem with respect to the quota (limit) of output it assigns each member nation.
 
  What is OPEC's goal and what sort of quota do you think the cartel assigns? How and why do nations cheat on their quota? What happens when a nation cheats on its quota?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Cheesycrackers

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 29, 2018
Answer to Question 1

E

Answer to Question 2

In order to keep oil prices high, as has been the case since 2003, OPEC creates a target level of output designed to achieve a particular high price. OPEC's goal is to set a price high enough so that its member nations earn the maximum economic profit. Once the target output is set, OPEC assigns a production quota to each member. As long as each member adheres to its quota the price will remain high and stable. However, from time to time, individual nations cheat on the agreement by producing more oil than they are allowed. Nations cheat because they realize that if they alone cheat, the impact on oil prices will be slight but the impact on their profit will be large. Once this oil shows up on world markets, the supply of oil increases and prices begin to fall. Then, once prices begin to fall other members begin to panic and they start selling more oil too in order to get the highest price they can before a collapse takes place. If every nation cheats, the supply will increase more than if just a few do and the collapse in price becomes a self-realizing prophecy.


daltonest1984

  • Member
  • Posts: 536
Reply 2 on: Jun 29, 2018
:D TYSM

recede

  • Member
  • Posts: 315
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Correct use a fire extinguisher Correct use a fire extinguisher
Attributed to the Manner of Peleus Painter, Red-figure calyx-krater. Attributed to the Manner of Peleus Painter, Red-figure calyx-krater.
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Growth cones. The cytoplasmic fingers (the filopodia) of growth cones seem to grope for the correct ... Growth cones. The cytoplasmic fingers (the filopodia) of growth cones seem to grope for the correct ...
Figure of a Woman with a Drawing Showing Evidence of Original Painting and Outlining Design Scheme Figure of a Woman with a Drawing Showing Evidence of Original Painting and Outlining Design Scheme
The drum shown in the figure has a radius of 0.40 m and a moment of inertia of 2.3 kg m2about ... The drum shown in the figure has a radius of 0.40 m and a moment of inertia of 2.3 kg m2about ...
Video: Sister chromatids of a metaphase chromosome animation

For a complete list of videos, visit our video library