Natural barriers to entry arise when, over the relevant range of output, there
A) are diseconomies of scale.
B) are constant returns to scale.
C) are several firms who produce at the lowest average cost.
D) are economies of scale.
E) is one firm that owns a key natural resource.
D
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Assuming all excess reserves are loaned out, if the reserve ratio is 40 percent, the money multiplier will be equal to
A) 2. B) 2.5. C) 4. D) 6.
In a competitive market with no externalities,
A) the consumer surplus is equal to zero because of competition. B) buyers cannot control the price, so the consumer surplus is zero. C) at the equilibrium price, marginal benefit exceeds marginal cost. D) at the equilibrium price, marginal benefit equals marginal cost. E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.
A tax is imposed on employers and workers that are used to fund Social Security and Medicare. This tax is sometimes referred to as
A) the federal income tax. B) the Income Security Tax. C) the payroll tax. D) the ACIF.
Government intervention in the marketplace for the purpose of influencing prices should be done whenever the opportunity cost of such actions falls to zero
Indicate whether the statement is true or false