Scale economies are said to be present when
A. there is a single firm in an industry.
B. an increase in output has no impact on average cost.
C. an increase in output leads to an increase in average cost.
D. an increase in output leads to a decrease in average cost.
Answer: D
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Refer to Figure 22.3 at quantity level B
A. Marginal cost is greater than marginal revenue, so it should cut production. B. Marginal revenue is greater than marginal cost, so the firm should expand production. C. The company is minimizing loss. D. The company is maximizing profit.
Dumping means selling goods in a foreign market at lower prices than those charged in the home market.
Answer the following statement true (T) or false (F)
There is a strong consensus among economists that monetary policy is more effective when it is formed:
A. independently of political pressure. B. to keep financial markets guessing. C. by an individual rather than a committee. D. in secrecy without the reasoning behind it being revealed for many years.
In order for the government to collect taxes, the government must first establish a(n)
A) ad valorem taxation. B) tax base. C) philosophy of taxation. D) justice system.