The total fixed cost curve is:
A. U-shaped.
B. upward sloping.
C. downward sloping.
D. horizontal.
Answer: D
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Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make
With this revision to the scenario, if both Tasha and Gloria play their dominant strategies, Tasha's net payoff will be ________ and Gloria's net payoff will be ________. A) $15; $12 B) $15; $15 C) $30; $30 D) $12; $12
What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted. B) The government avoids paying rent on buildings when importers pay the tariff. C) An attempt to capture the gains from trade by imposing a tariff D) The government's efforts to capture tariff rents E) The attempt by importers to avoid paying a tariff
Suppose that Firm ABC currently has a market share of 8 percent. Firm XYZ has a market share of 12 percent. What will happen to the Herfindahl-Hirschman index if the two firms merge? Show your work
What will be an ideal response?
If a firm is experiencing diseconomies of scale, its long-run average cost curve is increasing
Indicate whether the statement is true or false