Consideration of the minimum efficient scale of operation would suggest that, to minimize production costs, the market should be served by a large number of small firms when the LRAC curve slopes downward over the relevant range of output
Indicate whether the statement is true or false
FALSE
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Consumer surplus exists when a
A) person buys something with a marginal benefit less than what they paid. B) person buys something with a marginal benefit exactly what they paid. C) person buys something with a marginal benefit more than what they paid. D) producer sells something for more than it is worth. E) person buys something with a marginal cost less than what they paid.
If the nominal GDP of a country in the year 2005 was$25 trillion and the GDP deflator (relative to the base year 2000 . was 125, the real GDP of this country was _____
a. $25 trillion b. $5 trillion c. $20 trillion d. $125 billion
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If Sarah and Joe are working on a project together and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. Joe will put forth low effort, and Sarah will put forth high effort. B. both Joe and Sarah put forth low effort. C. both Joe and Sarah put forth high effort. D. Joe will put forth high effort, and Sarah will put forth low effort.
Regulating a monopolistically competitive market:
A. is easier than regulating a monopoly. B. is very common in the U.S. today. C. has grown over the past 50 years. D. is more difficult than regulating a monopoly.