Which of the following is not a reason why firms experience economies of scale?
A) Workers and managers can become more specialized, enabling them to be more productive.
B) As output increases, the managers can begin to have difficulty coordinating the operations of their firms.
C) Technology can make it possible to increase production with a smaller increase in at least one input.
D) Larger firms may be able to purchase inputs at lower costs than smaller competitors.
B
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The Sherman Act of 1890
A) established the corporate income tax. B) prohibited price-setting agreements among sellers. C) required employers to bargain collectively with labor unions. D) set maximum prices railroads could charge interstate shippers. E) set minimum prices railroads could charge without being guilty of unfair trade practices.
On a time-series graph with a ratio scale
A) the slope of the line is negative when the level of the variable is rising. B) the same distance along the vertical axis measures different amounts of the variable. C) time is plotted on the vertical axis rather than the horizontal axis. D) it is impossible to determine a trend.
The (false) idea that an industry should be protected because of learning-by-doing until it is large enough to compete successfully in world markets is the ________ argument for protection
A) cheap foreign labor B) infant industry C) dumping D) comparative advantage
Bondholders have a “prior claim” over stockholders on a company’s earnings or its assets.
Answer the following statement true (T) or false (F)