Economies of scale may be a barrier to entry in a situation in which
A) only small-scale production can lower the per-unit cost of production.
B) only small-scale production can meet the constantly changing market demand.
C) only large-scale production can lower the per-unit cost of production.
D) large-scale production is inefficient.
C
You might also like to view...
Suppose the price level is unchanged and real GDP decreases. Then
A) nominal GDP must decrease. B) nominal GDP must remain unchanged. C) nominal GDP must increase. D) none of the above are true.
Figure 5-5 shows a consumer budget line for French fries and hamburgers. If the household has $20 to spend, the price of hamburgers is
A. $1. B. $2. C. $4. D. $2.50.
If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will
A) increase the quantity supplied by 3.33 percent. B) increase the quantity supplied by 30.0 percent. C) increase the quantity supplied by 0.33 percent. D) decrease the quantity supplied by 30.0 percent.
Supply-side economics is based on the theory that:
a. budget deficits will stimulate demand, output, and employment. b. budget deficits will lead to higher interest rates, which will weaken their expansionary impact. c. higher tax rates will increase tax revenues. d. increases in aggregate supply lower the price level.