Constant returns to scale cause the long-run average cost curve to be:
A. horizontal.
B. vertical.
C. upward-sloping.
D. downward-sloping.
Answer: A
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In a _____, the state owns all means of production
A. mixed economy B. planned economy C. market economy D. totalitarian state
According to the graph shown, if this were depicting an autarky economy, the equilibrium price would be:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. $23
B. $16
C. $11
D. $45
Which of the following statements about collusion is true?
a. Collusion is legal in the United States. b. Its overriding goal is to enhance competition and thereby increase profits. c. The greater the number of firms, the less difficult it is to maintain a collusion. d. Collusion never results in benefits for the participants. e. Collusion may help to increase the profits of the participating firms.
For a large country, replacing imports with domestic goods can result in
A. a more efficient allocation of resources based on comparative advantage. B. improvement in the country's terms of trade. C. a decrease in the price of its exports. D. an increase in the world price of its imports.