In the light of the infant industry argument, identify the industry which is likely to have substantially high initial costs
a. Fashion designing
b. Retail industry
c. Iron and steel industry
d. Dairy industry
e. Software industry
c. Iron and steel industry
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Figure 7-13
Figure 7-13 shows the average total cost curves of four firms that produce milk. Some of the dairies are more productive. AR = P is the long-run price of milk. How many of these dairies will remain in the industry in the long run?
A. All of them B. Only 2 C. Only 3 D. Cannot determine with information given
When toilet paper sales increase, quarterly economic growth tends to rise. This is an example of:
A. two variables that are negatively correlated. B. the presence of ceteris paribus. C. correlation without causation. D. causation with no correlation.
Rebecca and Leah are roommates. Rebecca likes to study with the music playing loudly and Leah needs quiet when she studies. Rebecca would be willing to pay $5 a night to hear music while Leah would be willing to pay $10 a night for the quiet. In this situation
a. Leah should pay Rebecca $7.50 a night to not listen to music, because that would be a Pareto improvement b. Rebecca should stop listening to music because that would be a Pareto improvement c. There is no action that would create a Pareto improvement d. Rebecca should pay Leah $7.50 a night to listen to music, because that would be a Pareto improvement e. Leah should pay Rebecca $4.50 a night to not listen to music, because that would be a Pareto improvement
The Department of Justice guidelines call for government intervention in mergers when the Herfindahl-Hirschman Index in that industry is
a. 0 b. less than 100 c. between 1,000 and 1,800 d. less than 1,800 e. more than 1,800