Which of the following statements about an increasing-returns-to-scale industry is not true?
a. It will tend to concentrate production in the hands of a very few large firms.
b. Firms in the industry face higher costs per unit of production as their level of output increases.
c. Opportunity costs may rise with the level of output in such industries.
d. Tariffs can be used to stimulate production by a domestic industry capable of achieving increasing returns to scale.
e. The costs of producing a unit of output fall as more output is produced in such industries.
b
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A dominant strategy is a strategy that is best for a player in a game regardless of the strategies chosen by the other players
a. True b. False Indicate whether the statement is true or false
If we counted the value of non-cash, or in-kind, benefits given to the poor by the government, the poverty rate would be
A. higher. B. lower. C. not affected.
Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)?
A. food and beverages B. housing C. transportation D. medical care
If the price elasticity of demand is 0.4, a 5 percent increase in price will quantity demanded to fall by 2 percent.
Answer the following statement true (T) or false (F)