If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys,
a. tire producers should integrate backward into rubber production
b. there will be a monopoly in rubber production
c. tire producers should not integrate backward into rubber production
d. tire producers will be charged prices above what the cost of producing rubber themselves would be
e. tire companies will switch to fiberglass
C
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Which of the following are not included in the M1 definition of the money supply?
a. cash and currency b. checkable deposits c. money market deposit accounts d. All of the above are included.
Figure 17-13
In , if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how many baseballs will be purchased in the United States?
a.
4,000
b.
6,000
c.
8,000
d.
10,000
e.
12,000
Once a monopolistically competitive firm innovates, it is likely that:
A. it will need government protection to earn enough to cover its R & D costs. B. it will enjoy long-run profits. C. other firms will rush to create similar, highly substitutable goods. D. None of these is likely to happen.
Raw materials include which of the following?
A. Software B. Steel beams to build houses C. Oil D. Laptop cases