Answer the following statements true (T) or false (F)
1. If the minimum efficient scale in an industry is smaller than the size of the market of that industry, then we would have a natural-monopoly situation.
2. The fundamental reason that newspapers have such high prices is the high production costs from diseconomies of scale.
3. "3-D printers" are capable of producing real output like chairs or machine parts using a computer-controlled special printer at low cost even if you produce only one unit of output.
4. If start-up firms can quickly shift the short-run cost curves up and to the left, they would improve their chances of becoming profitable.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
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By providing and communicating information, the financial system
A) reduces the difference between the return on three-month U.S. Treasury bills and the return on thirty-year U.S. Treasury bonds. B) relieves individual savers from the necessity of searching out individual borrowers. C) eliminates the risk in investing in the stock market. D) guarantees investors a reasonable return on their money.
The slope of the utility possibilities frontier is
A) positive. B) negative. C) zero. D) undefined.
Say the required reserve ratio is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan: a. adds $2,000 in bank reserves
b. adds $10,000 in bank reserves. c. eliminates $2,000 in bank reserves. d. eliminates $10,000 in bank reserves.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a. are different b. are equal c. is higher for the product demanded d. is higher for the product supplied