How can economies of scale lead to monopoly?
A single firm, which experiences economies of scale over the entire range of industry demand, can provide a good or a service to the market at a lower average cost than can multiple firms. This is frequently the case with utilities in a local community.
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Higher nominal interest rates ________ the amount of money demanded and higher real income ________ the amount of money demanded.
A. increase; increases B. increase; decreases C. decrease; decreases D. decrease; increases
This Application addresses the concept of
A) inflation and the housing boom. B) the dangers of high interest rates. C) increases in consumer wealth. D) the down-side of leverage.
Checks and credit cards are NOT considered money because they
A) are issued by banks, not the Federal Reserve. B) are not the means of payment. C) typically require an identification requirement, such as your driver's license. D) are not backed by all commercial banks.
As output increases, total cost ________, total fixed cost ________, and total variable cost ________
A) increases; increases; increases B) increases; increases; does not change C) increases; does not change; increases D) does not change; increases; increases