In the long run, firms in many industries often experience a falling average total cost curve as a result of:
A. gains through trade.
B. increasing marginal returns.
C. economies of scale.
D. lower fixed costs.
Answer: C
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If production technologies are homothetic, all cost-minimizing production plans lie on the same ray from the origin for a given set of input prices.
Answer the following statement true (T) or false (F)
Monopoly is a market structure characterized by a:
a. single firm operating as a price taker. b. few firms operating as price takers. c. single firm that is not a price taker. d. none of these.
For a firm to price discriminate,
a. it must be a natural monopoly. b. it must be regulated by the government. c. it must have some market power. d. consumers must tell the firm what they are willing to pay for the product.
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The private demand for the vaccine is given by ________, and social demand for the vaccine is given by ________.
A. D2; MC B. D2; D1 C. D1; MC D. D1; D2