Question
1.Explain the effects of low price-guarantee on the price. (1.5 Marks) 2.Give reasons, when average cost increases as the total output increases for an increasing
1.Explain the effects of low price-guarantee on the price. (1.5 Marks)
2.Give reasons, when average cost increases as the total output increases for an increasing cost industry. (1.5 Marks)
3.
Figure shows the market for a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price (2 Marks)
a.What will be the market price?
b.How much each firm will produce and sell quantity?
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
