The necessary condition(s) to realize economies of scale include
A. having the financial resources for the high capital costs.
B. having sufficient demand for the product.
C. both financial resources for the high capital costs and sufficient demand for the product.
C. both financial resources for the high capital costs and sufficient demand for the product.
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Before it became illegal, cigarette manufacturers once relied heavily on TV advertising. According to the textbook, when the government banned TV advertising, the cigarette manufacturers:
A. thought their First Amendment rights were being violated. B. supported the ban due to their concern over health effects of smoking. C. benefited because the decision about whether to advertise on TV was a prisoner's dilemma. D. were made worse off because the ban significantly reduced cigarette sales.
Cost-benefit analysts often encounter the problem that those who would benefit from government provision of a public good tend to
a. overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good. b. overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good. c. understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good. d. understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good.
According to the official U.S. threshold, 35 percent of Americans live in poverty.
Answer the following statement true (T) or false (F)
As new firms enter a decreasing-cost industry
A. the LRAC curve shifts down. B. the position of the LRAC curve doesn't change, but firms move down their LRAC curve. C. the position of the LRAC curve doesn't change, but firms move up their LRAC curve. D. the LRAC curve shifts up.