Economies of scope involve
A. economies realized by producing several goods simultaneously.
B. economies in marketing and transportation of many products.
C. economies from being larger and have lower cost per unit.
D. all of the above.
Ans: A. economies realized by producing several goods simultaneously.
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A firm that has market power
A) can charge whatever it wants for its product. B) can charge a price above marginal cost. C) has positive economic profits. D) does not lose sales when increasing price.
Which of these is a supply-side approach to increase growth?
a. Spending on the construction and repair of state highways b. Providing tax benefits to start-up companies c. Investing in the production of arms and ammunitions d. Replacing old aircrafts with new fighter planes e. Increasing transfer payments to retirees
According to the theory of efficient markets:
A. investors use rules of thumb to make choices about which stocks to buy and sell. B. investors are able to use forecasts based on the dividend-discount model to generate above- average returns. C. the stock price should remain constant. D. a portfolio manager who charges no commission should not, on average, outperform an individual investor with access to the same funds.
Monopolistically competitive firms fail to fully realize their economies of scale.
Answer the following statement true (T) or false (F)