1. Tacit collusion is likely to occur when firms have different market shares. true or false?
2. Suppose walmart buys fresh roses from several hundred small backyard gardeners in California.These gardeners are very likely to be able to engage succesfully in tacit collusion. True or false?
3.Toby operates a small deli in a monopolistically competitive restaurant industry.In long-run equilibrium, the profit maximizing price of the three-meat sandwich is 3$.Price also equals his average total cost.Toby's minimum average total cost is less than $3. true or false?
4. Relying on brand names will always lead consumers to the best consumption choices if they buy the brand name rather than a cheaper substitute. true or false?
5. If perfectly competitive firm chooses its level of output so that the price equals marginal revenue, the value of the marginal product of labor will equal the wage rate. True or false?