When it's cheaper to produce two or more products in one firm than to produce them in separate firms, which of the following is said to exist?
a. Horizontal integration
b. Economies of scale
c. Decreasing returns to scale
d. Economies of scope
d
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To enter a local cable television market, a firm needs a license from the city government. This is an example of
A) a natural monopoly. B) the government maintaining consistent standards in the broadcast industry. C) a government-imposed barrier. D) occupational licensing.
Natural pollutants
a. include such releases as hazardous chemical wastes b. arise from nonartificial processes in nature, such as pollen c. refer to those associated with human activity such as fossil-fuel combustion d. all of the above
Consider the two graphs above. Suppose that final goods are assembled only when ordered and to satisfy the precise preferences of each consumer. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Allocative efficiency occurs when
a. output is produced at minimum average cost b. the marginal benefit, that consumers attach to the final unit purchased, just equals the opportunity cost of the resources employed to produce that unit. c. new firms enter a perfectly competitive market d. the marginal benefit consumers attach to products purchased is maximized e. goods and services are sold in an English style auction market