Economies of scale can benefit consumers to the extent that the costs of production incurred by the firms in the industry are lower than they would otherwise be
At the same time, the price-setting power of those firms is increased, which could hurt consumers. Indicate whether the statement is true or false
TRUE
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A set of producers is competitive if:
a. the good produced by one can be differentiated from the other. b. each supplies a complement of what the others produce. c. each supplies a substitute for what the others produce. d. the good produced by one can be used as an input by other producers.
Industries that are truly critical to the national defense should be protected from foreign competition if that is the only way to ensure their existence
a. True b. False Indicate whether the statement is true or false
In the economic way of thinking, which statement makes the most sense?
A) Costs determine prices. B) Prices determine costs. C) Costs determine demand. D) Demand determines supply.
Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consumer goods200 180 140 80 0 In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect
A. less growth in the future because it will use up its consumer goods. B. more growth in the future because of the accumulation of capital. C. the same amount of growth in the future but with a lower standard of living. D. the same amount of growth in the future but with a higher standard of living.