When there are economies of scale, larger and fewer firms bring cost efficiencies even as they reduce price competition.
Answer the following statement true (T) or false (F)
True
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Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________
A) rises; decreases B) rises; increases C) falls; decreases D) falls; increases
The figure above shows the costs and demand curves for the Bigshow Cable Company. To avoid any deadweight loss in the market served by Bigshow, the regulator must set the price at
A) $8. B) $6. C) $4. D) $2.
Differences in ________ explain why interest rates on Treasury securities are not all the same
A) risk B) liquidity C) time to maturity D) tax characteristics
The order of Soviet dictator Joseph Stalin to farmers in the 1930s to produce capital equipment rather than food
a. was based on government support payments for agriculture. b. relied on foreign assistance. c. was an illustration of the capital formation method. d. was an illustration of the brute force method of breaking the poverty cycle, and it was a very successful policy. e. was an illustration of the brute force method of breaking the poverty cycle, and it meant starvation for millions of farmers.