Assuming Cournot behavior, what happens to the market output, the price of the output, and each firm's output as the number of firms in a market increases?
What will be an ideal response?
As the number of firms increases, price declines, and each firm produces less, but total market output increases.
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2 Conflicting Principles (taxes and fairness)
What will be an ideal response?
Which of the following is most likely to be an example of economies of scale?
A. The per-unit costs on Excel Publishing Company's manuals fall because it adopted a new technology after receiving a large order from the government. B. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant. C. The XYZ Co. increased production 25 percent after a 30 percent increase in all inputs. D. Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs.
A highway without any tolls between 12am and 5am when there is very little traffic is an example of a ________ good.
A. collective B. commons C. private D. public
The questions that an economic system attempts to solve include
A) what to produce. B) how to produce items. C) for whom items are produced. D) all of the above.