Which of the following best describes the situation likely to unfold after a new manufacturing firm enters an oligopolistic market?
a. The new firm is initially hampered by economies of scale.
b. The new firm initially has low costs of production that increase over time.
c. The new firm has high sales during its early years followed by a sales decline.
d. The new firm is initially very profitable.
a. The new firm is initially hampered by economies of scale.
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The policy tool of "credit easing" refers to the
A) Fed's purchase of private securities to stimulate banks' lending. B) Fed's requirement that the federal government must lend to directly to home buyers. C) federal government's requirement that the Fed must lend directly to home buyers. D) Fed's lowering of the federal funds rate to zero. E) Treasury's issuance of federal debt to finance home buying.
Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates
The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase? A) 2 B) 5 C) 0 D) 1
Generally, most of the world’s industrial countries believe that central banks should be independent of their governments.
Answer the following statement true (T) or false (F)
A temporary decrease in government purchases in the classical model would
A) shift the production function to the left. B) shift the marginal product of labor curve to the right. C) shift the labor demand curve to the left. D) shift the labor supply curve to the left.