If producing more output has no effect on average cost then
A) there are diseconomies of scale.
B) there are economies of scope.
C) there are diseconomies of scope.
D) there are no economies of scale.
D
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A "social planner" is a fictional societal planner who would always choose the same outcome as the competitive market.
Answer the following statement true (T) or false (F)
Assume that a fixed exchange rate is overvalued. Describe the situation of a speculative crisis against this currency. What can the central bank do to defend the currency? Why might the alternative of devaluation be preferable?
What will be an ideal response?
"Unlike a perfect competitor, a profit-maximizing monopolist produces at an output rate at which marginal revenue exceeds marginal cost." Do you agree or disagree? Why
What will be an ideal response?
Each of the following is a source of monopoly except:
a. Patents. b. Large economies of scale. c. Small fixed costs. d. Government franchise.