With a natural monopoly, a potentially insurmountable barrier to entry can be the
A. low profit margins.
B. decreasing average total costs.
C. high fixed costs.
D. decreasing marginal costs.
Answer: C
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Suppose that the reserve ratio is 6% and applies only to checkable deposits. A bank has noncheckable time deposits of $300 million, checkable deposits of $100 million, and reserves of $8 million. What are the excess reserves of this bank?
A. $2 million B. $6 million C. $5.6 million D. $2.4 million
In the above table, the total cost of producing 9 units of output is
A) $20. B) $30. C) $50. D) $70.
If US consumers want to buy Chinese goods, they will
a. Buy Yuan and sell US Dollars b. Sell Yuan and buy US Dollars c. Neither buy nor sell Yuan d. Neither buy nor sell dollars
Discuss the concept of the globalization of production.
What will be an ideal response?