If the minimum efficient scale in aluminum production exceeds the quantity of aluminum any individual aluminum siding producer buys,
a. siding producers should integrate backward into aluminum production
b. there will be a monopoly in aluminum production
c. siding producers should not integrate backward into aluminum production
d. siding producers will be charged prices above what the cost of producing aluminum themselves would be
e. siding companies will switch to vinyl
C
You might also like to view...
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Monetarists contend that the channels of monetary influence in Keynesian structural models are too ________ defined, ________ the importance of monetary policy
A) broadly; exaggerating B) broadly; understating C) narrowly; understating D) narrowly; exaggerating
The consumers' surplus derived from the last unit of a good purchased
a. tends to be less than 0 b. tends to be equal to 0 c. tends to equal the price of the good d. tends to be greater than the price of the good e. depends on the marginal utility of the first unit purchased
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
A. An increase in supply. B. A decrease in supply. C. A decrease in demand. D. An increase in demand.