If the minimum efficient scale (MES) in an industry is 20 percent of the total consumption of a product, how many MES plants could be supported profitably in that industry?
A. 5
B. 10
C. 20
D. 100
A. 5
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During the Chinese experience with pegging the yuan to the dollar, the yuan was undervalued. As a result,
A) the prices of Chinese exports were higher than they would have been without the peg. B) the equilibrium value of the yuan was below the pegged value of the yuan. C) there was a surplus of yuan on the market that the Chinese government had to purchase to maintain the peg, depleting China's reserves of dollars. D) there was a surplus of dollars on the market that the Chinese government had to purchase to maintain the peg.
Profit-sharing plans, where employees receive bonuses in proportion to the company's profits,
a. reduce the principal-agent problem. b. are intended to reduce the number of employees who are residual claimants. c. eliminate shirking problems. d. are essentially gifts to employees and do not generate any benefit for the firm's owners.
If people can be prevented from using a certain good, then that good is called
a. rival in consumption. b. excludable. c. a common resource. d. a public good.
A monopolist produces in the elastic segment of its demand curve because when it lowers the price
A) the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue increases. B) the percentage change increase in quantity demanded is less than the percentage change decrease in price and total revenue increases. C) the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue decreases. D) the percentage change decrease in quantity demanded is less than the percentage change decrease in price and total revenue increases.