Which of the following characterizes a cartel?

Price discrimination

Price collusion and output quotas

Productive efficiency but allocative inefficiency

A more competitive oligopoly

Persistent normal profit

Michelle can produce 20 dozen cookies and 5 cakes in one day. Robert can produce 5 dozen cookies and 5 cakes in one day. Who should specialize in cakes and who should specialize in cookies?

Robert should specialize in cake and cookies.

Neither Michelle nor Robert should specialize.

Michelle should specialize in cakes and cookies.

Michelle should specialize in cakes and Robert in cookies.

Robert should specialize in cakes and Michelle in cookies.

Which of the following resources is the most rival?

A music concert at a city park

A full moon

An interstate highway

A zoo

The labor of a hair stylist

A monopolist engages in perfect price discrimination. What will happen to the consumer surplus?

It significantly increases as it absorbs the producer surplus.

It disappears and becomes deadweight loss.

It decreases based on the elasticity of demand.

It is unchanged.

It is entirely converted to producer surplus.