When firms already in the industry produce under conditions of substantial economies of scale, entry into the industry is usually more difficult than if the firms produced without those economies of scale
Indicate whether the statement is true or false
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If a series of severe storms in the Atlantic Ocean drastically significantly disrupted the transatlantic slave trade, which would most accurately describe the market for slaves in colonial America?
a. The price of slaves would increase and the quantity of slaves would decrease. b. The price and quantity of slaves would increase. c. The price and quantity of slaves would decrease. d. The price of slaves would decrease and the quantity of slaves would increase.
Marginal cost may be defined as
A. the change in average total cost that results from producing one more unit of output. B. the change in average variable cost that results from producing one more unit of output. C. the change in total cost that results from producing one more unit of output. D. the rate of change in total fixed cost that results from producing one more unit of output.
A perfectly competitive industry achieves allocative efficiency when
A) goods and services are produced at the lowest possible cost. B) goods and services are produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it. C) it produces where market price equals marginal production cost. D) firms carry production surpluses.
If the interest rate is 3 percent per year and you borrow $100 for one year, at the end of the year you must pay back
A) $97. B) $100. C) $103. D) $3.