A firm is more likely to produce its own input if all of the following are true except which one?
A) The firm has trade secrets.
B) The firm is concerned about the hold-up problem.
C) The firm experiences diseconomies of scale when producing the input.
D) The transportation cost of the input is expensive.
C) The firm experiences diseconomies of scale when producing the input.
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Refer to Figure 4-1. If the market price is $2.00, what is the consumer surplus on the second burrito?
A) $0 B) $1.00 C) $2.00 D) $4.50
The change in the total revenue of a firm that results from employing one additional unit of a factor of production is defined as the
a. total revenue product of the resource. b. marginal product of the resource. c. marginal revenue product of the resource. d. average revenue product of the resource.
Falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies. Discuss this statement. Do you agree? Why or why not?
What will be an ideal response?
Which component of federal spending is included in GDP?
A. net exports B. transfer payments C. government purchases D. capital supply