One of the reasons that a firm can be ________ efficient than a market is that the firm ________
A) more; does not have any economies of scale
B) more; lowers transactions costs
C) less; has economies of scope
D) less; produces lower profits
B
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Economists assume people's tastes are identical
Indicate whether the statement is true or false
In the HO model, reciprocal demand leads to an equilibrium price by inducing changes in both demand and supply
Indicate whether the statement is true or false
The change from prescriptive rights to priority rights meant all of the following except
(a) Entrepreneurial costs of economic development, such as river and lake pollution, had to be paid by those who were responsible for the costs. (b) The courts encouraged entrepreneurial activity by judicial interpretation. (c) Amenity rights to scenery, clear air and quiet enjoyment could be reduced. (d) Judges placed social weights upon property rights that favored some more than others.
The opportunity cost of producing capital is
a. decreased current production of consumption goods b. increased future production of consumption goods c. the amount of roundabout production d. abundant capital accumulation e. the decreased amount of future capital available