If an industry's long-run per-unit costs increase as its output increases then
A. the firm is most likely a constant-cost industry.
B. the firm is most likely an increasing-cost industry.
C. the firm's long-run economic profits must be greater than zero.
D. the firm is most likely a decreasing-cost industry.
Answer: B
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Explain how a business owner who continually practices taste-based discrimination may eventually pay for his decision to discriminate in terms of declining productivity and profits, especially if he is in a highly competitive industry
What will be an ideal response?
The Sherman Act of 1890 was passed to prohibit
A) combinations, trusts, or conspiracies to restrict interstate or international trade. B) monopolization or attempts to monopolize interstate or international trade. C) both of the above. D) neither of the above.
Porter's "Five Forces Model" is based on
A) the laws of supply and demand. B) the law of diminishing returns. C) the Structure-Conduct-Performance model. D) the key factors affecting demand.
Allowing an inventor to have the exclusive rights to market her new invention will lead to (i) a product that is priced higher than it would be without the exclusive rights. (ii) desirable behavior in the sense that inventors are encouraged to invent. (iii) higher profits for the inventor
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)