Author Question: In a cartel A) each firm has an incentive to decrease its own production below the level set by ... (Read 142 times)

elizabeth18 · **on:** Jun 29, 2018

In a cartel

A) each firm has an incentive to decrease its own production below the level set by the cartel.
B) the firms' marginal cost equals the price set by the cartel.
C) each firm has an incentive to lower its price below the level set by the cartel.
D) each firm has an incentive to raise its price above the level set by the cartel.

Question 2

The above table shows Tammy's total utility from videos and CDs. If Tammy has 70 to spend on videos and CDs and if the price of a video is 10 and the price of a CD is 20, then Tammy maximizes her utility by purchasing

A) 3 CDs and 1 video.
B) 1 CD and 5 videos.
C) 2 CDs and 3 videos.
D) none of the above