Bigness, or large firms, may benefit consumers in which of the following ways?
A. Larger firms usually charge lower prices than smaller firms.
B. Larger firms with monopoly power definitely have greater incentive to be efficient and innovative.
C. Larger firms may take advantage of economies of scale and scope.
D. Larger firms are more responsive to consumers’ desires.
Answer: C
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In a monopsony labor market, the employer hires the quantity of labor where the ________ equals the ________
A) marginal revenue of labor; marginal cost of labor B) marginal cost of labor; marginal product of labor C) marginal product of labor; value of marginal product of labor D) marginal cost of labor; value of marginal product of labor
Sunk costs are:
A. costs that have been incurred and cannot be recovered. B. explicit costs that will incur large implicit costs to recoup or recover. C. costs that are upfront on a project and can be pulled out if the business goes under. D. the cost of recovering lost expenditures.
In utility analysis, it is assumed that marginal utility diminishes as consumption of a product decreases
a. True b. False Indicate whether the statement is true or false
A shift to a more expansionary monetary policy will
a. increase the long-term growth rate of the economy. b. reduce the future rate of inflation. c. Stimulate output and employment almost immediately. d. Stimulate output and employment, but only after a time lag that is generally long and variable.