According to Gary Libecap and Ronald Johnson, which of the following was a positive outcome of fraudulently obtaining land by larger firms?
a. Fines charged to fraudulent companies provided substantial revenues for the federal government.
b. Resources were transferred to companies that could take advantage of economies of scale.
c. Conflicts between farmers and railroads were reduced.
d. Legislators friendly to economic development were elected because of backing from the fraudulent companies.
b. resources were transferred to companies that could take advantage of economies of scale.
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Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, they are classified as
All of the following describes Nazi Germany's economic system, except that
A. the ownership of land, labor and capital was in private hands. B. it was highly nationalistic with much of its production directed toward military goods and services. C. the government dictated what was to be produced. D. a major goal was to redistribute income from the wealthy and the middle class to the poor.
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. How much profit is each firm making if fixed costs are $375 per firm?
What will be an ideal response?
If an isocost line crosses the isoquant twice, a cost minimizing firm will
A) use a different isocost line to select the bundle of inputs. B) use the input bundle associated with the intersection on the higher point of the isoquant. C) use the input bundle associated with the intersection on the lower point of the isoquant. D) Both B and C.