Economists no longer attack industry concentration with the same fervor they once did because
A. small firms do the most research in the United States.
B. the benefits of product differentiation and product competition are illusory.
C. substantial economies of scale result in completely competitive market structures.
D. even firms in highly concentrated industries can be pushed to produce efficiently under certain market circumstances.
Answer: D
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Suppose the quantity demanded of ice cream cones increases from 400 to 425 cones a day when the price is reduced from $1.50 to $1.25. In this situation, the elasticity of demand, calculated using the average method, is
A) 3. B) 1. C) 0.33. D) 1.33.
A simple deposit multiplier equal to one implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.
Farm prices and total revenue have generally been failing because:
a. productivity in agriculture has been increasing b. demand for farm products is income elastic c. demand for farm products is price elastic d. all of the above
For a competitive firm experiencing diminishing marginal productivity, the value of the marginal product (i) increases when the price of output decreases. (ii) changes when marginal product changes. (iii) diminishes as the number of workers rises
a. (i) and (ii) b. (i) and (iii) c. (ii) and (iii) d. All of the above are correct.