If there are economies of scale throughout the relevant output range of production, which is false?
a. It is a natural monopoly
b. It is more efficient to have a single firm produce the good.
c. It would typically result from a firm's possession of an exclusive patent.
d. One large firm can produce at lower cost than two or more smaller firms.
c
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"The number of substitutes available affects the price elasticity of demand for a good. So one way to know if apples and oranges are substitutes for each other is to look at the price elasticity of demand for each." Comment on this assertion
What will be an ideal response?
There is an average price for a used car that accounts for both good used cars and bad used cars ("lemons"). At the current market price for used cars, the persons __________ likely to offer their used cars for sale are people who own __________.
A. most; "lemons" B. least; good used cars C. least; "lemons" D. a and b E. There is not enough information to answer the question.
The most surprising outcome of the Solow growth model is that
A) the population growth rate has no effect on the standard of living. B) the capital-labor ratio has no effect on the output-labor ratio. C) a higher rate of national saving does not lead to a permanently higher rate of output growth. D) a higher rate of depreciation lowers the capital-labor ratio, but not the output-labor ratio.
A determinant of the supply of loanable funds is:
A. current economic conditions. B. expected profit on an investment. C. investors’ confidence. D. All of these are determinants of the supply of loanable funds.