To allow the price mechanism to work, no one business firm should be large enough to have an _____________________.
Fill in the blank(s) with the appropriate word(s).
influence over price
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Answer the question below based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206For the years shown, the growth of ________.
A. nominal GDP exactly reflects increases in real output B. nominal GDP understates increases in real output C. nominal GDP overstates increases in real output D. real GDP exceeds the growth of nominal GDP
Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large
In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of small firms to minimize production costs. B) a small number of large firms to minimize production costs C) a large number of large firms to minimize production costs. D) an indeterminate number of firms of indeterminate size to minimize production costs.
If the minimum efficient scale in toaster production is 500,000 units per year,
a. the average cost of producing 300,000 toasters is greater than the average cost of producing 500,000 b. the average cost of producing 300,000 toasters is equal to the average cost of producing 500,000 c. the total cost of producing 300,000 toasters is greater than the total cost of producing 500,000 d. the firm should not produce more than 500,000 toasters e. MC exceeds AC at 500,000 toasters
Which of the following best approximates a pure monopoly?
A. The foreign exchange market. B. The Kansas City wheat market. C. The only bank in a small town. D. The soft drink market.