Start-up costs:
A. have no impact on the number of firms in an industry because they are sunk costs.
B. are the one-time costs incurred when beginning the production of a new product.
C. are inversely related to variable costs.
D. are always greater than marginal costs.
Answer: B
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Which of the following statements correctly describes a total product curve?
A) Points above the total produce curve are efficient. B) The curve shows that output always increases as labor employed increases. C) The curve separates attainable outputs from unattainable outputs. D) The curve shows minimum levels of output. E) The curve first falls, reaches a minimum, and then rises.
Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?
A) the ability to produce the product at a lower cost B) the number of competitors in the market C) changing consumer tastes D) a rise in the price of a key input, for example, a rise in the price of oil leads to higher energy costs
If a banker expects interest rates to fall in the future, her best strategy for the present is
A) to increase the duration of the bank's liabilities. B) to buy short-term bonds. C) to sell long-term certificates of deposit. D) to increase the duration of the bank's assets.
The NAIRU:
A. is difficult to measure. B. can change over time. C. occurs at the economy's level of potential output. D. All of these statements are true.