A U-shaped long-run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production
Indicate whether the statement is true or false
TRUE
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The GHG permitting requirements
a. are applicable to both mobile and stationary sources b. will not be in force until 2016 c. are part of the New Source Review requirements d. all of the above
If a market basket of goods cost $100 in the base year and $125 in a later year, then average prices have increased by:
A. 25 percent. B. 80 percent. C. 125 percent. D. 225 percent.
An incumbent usually charges a higher price than a new entrant does. Which of the following is a plausible reason for this observation?
A. An incumbent usually has a bigger bureaucratic body than a new entrant does and hence has a higher marginal cost. B. The incumbent is ignorant of the new entrant, hence it is still charging the old high price. C. Consumers are risk averse, hence new firms charge lower prices to attract customers. D. All of the statements associated with this question are correct.
People will tend to use a good that has a legally established zero price tag as if it had no value because
What will be an ideal response?