Recall the Application about running a software programming business to answer the following question(s).The current income you would sacrifice to start your own software development business is part of the:
A. opportunity cost of invested funds.
B. opportunity cost of starting a business.
C. cost of doing business.
D. present value of your initial investment.
Answer: B
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Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit. b. stay in operation in the short-run. c. shut down. d. none of these.
When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s)
a. economies of scale b. economies of scope c. diminishing marginal returns d. marginal-cost pricing
Oligopolist A cuts price in an attempt to enlarge his share of the market. His competitors fail to retaliate with price cuts. In this case, in Figure 13-3, oligopolist A will move from point A to which point?
A. B B. C C. D D. E
Which of the following is true of import-substitution strategies?
a. They dominate the strategies of the developing world. b. They focus on the production of goods not produced in developed countries. c. They focus on the production of exportable goods. d. These strategies lower the price of the domestically produced goods than the imported goods. e. They generally require the removal of import barriers like tariffs or quotas.