Use the Following to Answer Questions: Table: Abracadabra Processor Limited

question 69

Essay

Use the following to answer questions: Table: Abracadabra Processor Limited $$\begin{array} { | c | c | } \hline \text { Number of Workers } & \text { Number of Computer Chips Produced } \\\hline 3 & 900 \\\hline 4 & 1,250 \\\hline 5 & 1,550 \\\hline 6 & 1,800 \\\hline 7 & 2,000 \\\hline 8 & 2,150 \\\hline 9 & 2,250 \\\hline\end{array}$$
-(Table: Abracadabra Processors Ltd.) Refer to the table. Each computer chip produced sells for $350. Suppose that unions enter into the industry and workers become unionized and wages rise from $45,000 to $60,000 per year. How many workers will Abracadabra hire?

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Definitions:

Collude

When firms work together, often in secret, to fix prices, limit production, or divide markets, in order to increase profits by reducing competition.

Cartel

An alliance of producers who agree to control prices, production, and marketing of their products to maximize collective profits.

Oligopoly Market

A market structure characterized by a small number of firms that dominate the market, often leading to limited competition.

Licensed to Sell

The authorization given to individuals or companies to engage in the selling of certain products or services.