Nascent industries require adequate protection from foreign competition because:
a. they experience economies of scale.
b. they experience diseconomies of scale.
c. the quality of the products of such industries are comparatively inferior than the products of their foreign competitors.
d. they do not have adequate resources to undertake research and development.
e. their initial costs of production are considerably higher than the foreign firms.
e
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Which of the following would be consistent with the notion of a competitive market process, but would be inconsistent with the notion of perfect competition?
A) Cost-plus-markup pricing B) Freedom of entry C) Price taking behavior D) Large numbers of buyers and sellers E) All of the above.
The cyclically adjusted budget deficit calculates the budget surplus or deficit at
A) potential GDP. B) average GDP. C) real GDP. D) nominal GDP.
The Kremerian model on population growth:
a. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that poverty causes population growth, and not the other way around. b. provided additional empirical support to Thomas Malthus' claim that higher population growth rate causes poverty. c. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that world population growth and poverty are completely unrelated. d. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that world population growth is a key driver of advancing economic prosperity.
Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. If fixed costs are zero and the firm engages in two-part pricing, the most profits the firm will earn is:
A. $50. B. $5. C. $10. D. $25.