In Figure 6.6 if price is P2, then the industry will:
A. expand.
B. contract.
C. stay the same size.
D. cease to exist.
Answer: C
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If a firm increases output and its average total cost rises, then the firm is experiencing economies of scale
a. True b. False Indicate whether the statement is true or false
An American company sets up a joint venture to develop a mining operation in Tanzania. This is an example of _____
a. foreign direct investment b. portfolio investment c. hedging d. arbitrage
A dominant strategy is one that
a. makes every player better off. b. makes at least one player better off without hurting the competitiveness of any other player. c. increases the total payoff for the player. d. is best for the player, regardless of what strategies other players follow.
A firm's ______ are costs that increase as quantity produced increases. These costs often show ______ illustrated by the increasingly steeper slope of the total cost curve.
A. fixed costs; opportunity costs B. variable costs; diminishing marginal returns C. fixed costs; technological changes D. variable costs; constant returns to scale