Which of the following could cause an industry to be an increasing-cost industry?
a. The development of subindustries in response to industry growth.
b. The factor-price effect.
c. Identical break-even prices across firms.
d. Substantial economies of scale in production.
b. The factor-price effect.
You might also like to view...
What assumptions are made concerning wages and prices in a classical economic model?
What will be an ideal response?
In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of an increase in
A) the price level. B) foreign incomes. C) aggregate supply. D) the foreign exchange rate. E) expected future income.
Regulation of monopolies is justified on the ground that a monopolist sells too less at a too high price
a. True b. False Indicate whether the statement is true or false
Surplus
What will be an ideal response?