Q 4 36. When firms get together and agree on prices and output, it is called a. Price leadership. b. The rule of reason. c. Monopolistic competition. d. Collusion. e. Intermediation. The question below is based on the following cost and revenue schedule for the Presto Piano Company: Output Total Revenue (S) 1 1,000 2,000 3,000 4,000 5,000 6,000 2 3 4 5 37. To maximize profits, the firm should produce between: a. 1 and 2 units per period. b. 2 and 3 units per period. e. 3 and 4 units per period. d. 4 and 5 units per period. e. 5 and 6 units per period. a $1,400 b. $14,000 c. $4,000. d. $1,800. c. $1,600 Total Cost (S) 38. If the permanent annual rate of return on an asset that costs $20,000 is 7 percent, then each year the owner of the asset will earn: A 1,000 1,600 2,500 3,300 4,300 7,000 6 MacBook Pro & 20 Page < 7 11 > of 12