______ occur when a single firm can produce two or more products more cheaply than can two separate firms.
A. Economies of scale
B. Economies of scope
C. Diseconomies of scale
D. Increasing returns to scale
B. Economies of scope
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Real GDP measures the ________ of production.
A. physical volume B. current dollar value C. change in the volume D. current market value
Which of the following leads to the tragedy of the commons?
A) The use of common pool resources above the socially optimal level B) The low level of satisfaction derived from the use of common pool resources C) The high rate of taxation on common pool resources D) The tendency of consumers to use common pool resources without paying for them
Which of the following move the handling of a common property resource closest to efficiency?
A) ensuring that the sellers of the resource are perfectly competitive B) ensuring that the seller of the resource is a monopolist C) banning the sale of the resource D) banning the use of the resource E) assigning a usage fee for access to the resource
If the resource market is perfectly competitive:
a. the market demand for the resource is perfectly elastic. b. the market demand for the resource is perfectly inelastic. c. the suppliers can affect the input price by increasing or reducing their supply. d. the input price to each firm is constant. e. the supply of the resource is perfectly inelastic.