The long-run average total cost curve of a natural monopolist
A. Is U-shaped.
B. Is below the long-run marginal cost curve in the relevant range of production.
C. Reflects diseconomies of scale.
D. Is downward-sloping in the relevant range of production.
Answer: D
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Indicate whether the statement is true or false
Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?
a. The group with the lower earnings is being discriminated against. b. The group with the lower earnings is less productive. c. The group with the lower earnings has less human capital. d. Any of the above statements could, either partially or entirely, explain this difference.
Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage
a. increases because the marginal productivity of life guards increases. b. decreases because the marginal productivity of life guards decreases. c. increases because the supply of life guards increases. d. decreases because the supply of life guards decreases.
In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________
A) of 100 percent; 20 percent B) above 50 percent; less than 1.5 percent C) of less than 10 percent; over 40 percent D) of 17 percent; 33 percent