Economies of scale exist where the long-run average cost curve is
A) horizontal.
B) downward sloping.
C) upward sloping.
D) tangent to the marginal cost curve.
Answer: B
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Netflix, an online DVD rental service, was established in 1997. In 2010, Netflix has more than 10 million subscribers. This technology has ________ in the labor market for computer software programmers
A) decreased demand B) increased supply C) decreased supply D) increased demand
Which of the following is an example of a possessory property right?
a. The right to use a public park for morning walk. b. The right to park your car in your garage. c. The right to enjoy the fragrance of the flowers planted in your neighborhood. d. The right to travel in public transport.
The analysis of oligopolistic behavior is difficult because
a. there are few real-world examples of oligopolies for economists to study. b. oligopolists make decisions independently of each other. c. firms in oligopolistic industries react to each other's behavior in many ways. d. economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.
Which of the following scenarios shows the likely effect of a 20% tariff on steel imports?
a. The price of imported steel falls. b. The volume of steel imports rises. c. Sales of imported steel increase. d. The price of domestic steel rises.