If there are ten plants producing the total domestic consumption of the product and each plant is operating at minimum efficient scale, then each plant accounts for what percentage of domestic consumption?
A. 5 percent
B. 10 percent
C. 20 percent
D. 25 percent
B. 10 percent
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Each of the curves plotted in the graph shown in the above figure is known as a
A. Phillips curve. B. Keynesian curve. C. Lorenz curve. D. Laffer curve.
Discuss the continuing problem with farm policy after the Food, Conservation and Energy Act of 2008
What will be an ideal response?
If real GDP per capita is decreasing, real output is:
a. growing less rapidly than the population. b. growing more rapidly than the population. c. growing at the same rate as the population. d. growing more rapidly than are prices.
The owners of sports franchises often complain that free-agency (open bidding for player services) threatens their profitability and thus their long-run viability. Given your knowledge of perfect competition, which of the following is correct?
A) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players equal zero. B) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players is negative. C) Team owners are lying, as free-agent salaries are still much too low. D) Team owners are telling the truth, as free-agent salaries are much too high.