If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in smoothies. B. Dan has the comparative and absolute advantage in sandwiches. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
The antebellum transportation revolution
a. was driven by a few firms that gained monopoly control of the major transportation routes. b. increased the prices of many consumer goods. c. discouraged urban growth. d. caused political and economic tension between the East and the West. e. None of the above.
When a monopolistically competitive firm’s demand curve is tangent to it average cost curve,
A. the firm earns zero economic profit. B. new firms do not enter the market. C. the market is in long run equilibrium. D. All of these responses are correct.
Based on the graphic for perfect competition versus monopoly, the change between the producer surplus of perfect competition and the producer surplus of a monopoly is ______.
a. a – b
b. a + b
c. b
d. –c