A constant-cost industry is more likely to arise in a market where:
A. the industry takes only a small portion of the resources available.
B. the industry takes only a large portion of the resources available.
C. inputs have very different levels of quality.
D. firms have large fixed costs and small marginal costs.
Answer: A
You might also like to view...
If the regulator wants to avoid any deadweight loss in a natural monopoly market, the regulator has the firm set its price equal to its
A) average fixed cost. B) average total cost. C) average variable cost. D) marginal cost.
Refer to Figure 12-8. Suppose the firm produces 4,000 units. What does the shaded area labeled A represent?
A) total revenue B) total fixed cost C) profit D) total variable cost
Which of the following does not represent a tradeoff facing a consumer?
a. choosing to purchase more of all goods b. choosing to spend more time on leisure and less time on work c. choosing to spend more now and consume less in the future d. choosing to purchase less of one good in order to purchase more of another good
Using supply and demand curve analysis, the triangular area below the equilibrium price and above the supply curve is:
A. ?consumer surplus. B. ?producer surplus. C. ? marginal cost. D. ?deadweight loss. ?