Economies of scale may be a barrier to entry in a situation in which
A) only small-scale production can lower the per-unit cost of production.
B) only small-scale production can meet the constantly changing market demand.
C) only large-scale production can lower the per-unit cost of production.
D) large-scale production is inefficient.
Answer: C
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Refer to the above table. The market quantity supplied when the price is $6 is
A) 0. B) 5. C) 10. D) 20.
Unions face a trade-off between higher wages and
A) fewer available positions. B) more available positions. C) equipment. D) none of the above.
All of the following will shift the demand curve for capital, except:
a. future expectations about the demand for the good produced by a firm. b. technological changes. c. the price of capital. d. the entry of new firms into the market. e. the change in the interest rate.
A law that encourages market competition by prohibiting firms from gaining or exercising excessive market power is
a. a patent b. in conflict with the Constitution c. supported by laissez-faire advocates d. impossible to enforce e. an antitrust law