Give an example of an increasing-cost industry and explain why it fits this category. Avoid using examples provided in the text.
What will be an ideal response?
but should show a thorough understanding of an increasing-cost industry. For example, drilling for oil is an increasing-cost industry. The amount of oil is scarce, and the amount that can be obtained easily is limited. As a result, as the oil industry expands, the easily obtained supplies are used up and greater supplies can be obtained only by using more expensive processes or by using lower-quality (and less-productive) sources of oil.
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In 2015, JP Morgan Chase announced that it was laying off 5,000 employees. The laid-off employees who were not able to find jobs at another bank due to a permanent decline in demand in the banking industry would be considered
A) frictionally unemployed. B) structurally unemployed. C) seasonally unemployed. D) cyclically unemployed.
Relative to uniform-price policy, price discrimination across segmented markets (sometimes called third-degree price discrimination):
a. always reduces welfare. b. always increases welfare. c. may increase welfare if total output falls. d. may increase welfare if total output rises.
Ever since the creation of the interstate highway system, the railroads have had to compete with trucks for freight shipments. Union Pacific, the nation's largest railroad, now offers door-to-door services to clients, using their own trains and trucks. This must be the result of:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. deregulation. e. high fuel prices.
Assume that you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule of 72, what will your investment be worth after 16 years?
a. $550 b. $3,960 c. $1,100 d. $797.5 e. $1,200