Industries in which firms have high fixed costs and low marginal costs are likely to have a:
A. large number of small firms.
B. small number of large firms.
C. small number of small firms.
D. large number of large firms.
Answer: B
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The U.S. money supply measure that consists of currency plus travelers checks and check able deposits is referred to as
a. M1. b. M2. c. M3. d. M1 + M2.
If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,
a. demand is elastic. b. demand is inelastic. c. elasticity of demand is unitary. d. None of the above is correct.
Generally, on a linear two-good production possibilities curve, the opportunity cost of the good measured on the vertical axis is:
A. one minus the opportunity cost of the good measured on the horizontal axis. B. the negative of the opportunity cost of the good measured on the horizontal axis. C. the reciprocal of the opportunity cost of the good measured on the horizontal axis. D. the absolute value of the slope of the production possibilities curve.
When the demand for loanable funds rises, the amount of money borrowed will ___________.
A. rise B. decline C. be unchanged