"Learning by doing" allows an incumbent firm to deter entry because
A) it raises the incumbent's marginal cost
B) it lowers the incumbent's marginal cost
C) it shifts the demand for the good rightward
D) it is only available to incumbents and not future entrants
B) it lowers the incumbent's marginal cost
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The market for airplane service on a particular route is a commonly cited example of
a. resale price maintenance. b. monopolistic competition. c. the benefits of vertical integration. d. a contestable market.
In a progressive tax system, ________
A) the average tax rate equals the marginal tax rate B) the marginal tax rate exceeds the average tax rate C) the average tax rate exceeds the marginal tax rate D) the average tax rate is equal for all taxpayers
Indifference curves shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) with none of the above because changes in income and prices do not shift indifference curves.
At the beginning of the 20th century one farmer in the U.S. produced enough to feed ____________ people, and at the end of the century, one farmer produced enough to feed ____________ people
A) 20; 40 B) 7; 15 C) 12; 42 D) 8; 35