Economies of scale will create a barrier to entry in an oligopoly industry when
A) a firm's minimum efficient scale occurs where long-run average total costs are constant.
B) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales.
C) the industry's four-firm concentration ratio is less than 40 percent.
D) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales.
D
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The price of good X is $2.00 and the price of good Y is $1.00. Last year, the price of good X was $1.00 and the price of good Y was $2.00. If a consumer has $100, draw there their budget line for each year (label them accordingly). Add as many indifference curves as needed to show a situation in which the consumer is no better or worse off this year than they were last year. Be sure to label their optimal baskets for both years. Explain why what you have drawn is correct.
What will be an ideal response?
Compared with fiscal policy, monetary policy is:
a. more depenent on congressional actions b. quicker and easier to implement c. slower and more cumbersome to implement d. more likely to produce an offsetting net export effect
Which is the best example of an intangible good?
A) the car you dream of owning but cannot afford B) the suit you hope will make a good impression when you go on job interviews C) the textbook study guide you hope will prepare you to perform well on examinations D) the advice and expertise provided by the music store clerk who sold you that CD
Ad valorem taxation means
A. that the tax rate is a percentage of the price paid for a product. B. a progressive property tax imposed in some states. C. a negative income tax. D. that only the value added by a service provider is taxed.