A patent on a product gives a firm
A. protection from having the invention copied or stolen for a period of 20 years.
B. excessive profits in the long run.
C. economies of scale in producing the product.
D. the power to impose a tariff on a competing product.
Answer: A
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If a firm pays all transportation costs and it is very costly to transport the inputs, but relatively inexpensive to transport the final product, the cost-minimizing location for the plant will be closer to the ________ and farther away from the ________.
A) customers; distributors B) customers; inputs C) distributors; customers D) inputs; customers
If over the next six months inflation is higher in the U.S. than in foreign countries, then according to purchasing-power parity
a. only the nominal exchange rate depreciates. b. both the real and nominal exchange rate appreciate. c. both the real and nominal exchange rate depreciate. d. only the real exchange rate appreciates.
Which of the following is similar for both a competitive industry and a monopoly?
A.) The level of economic profits in the long run. B.) Continuous pressure to improve product quality. C.) Profits signal consumers' demand for more output. D.) In the long run, average total costs are minimized.
What role do social networking Web sites play in creating confirmation bias among users?
What will be an ideal response?