Economies of scale for firms in an industry can limit competition
Indicate whether the statement is true or false
T As we have seen before, if each firm must achieve a considerable size in order to achieve low average costs, there may not be room for many firms in that industry. Also, the effect that entry at competitive scale may have in lowering market price can discourage entry.
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In a closed economy, which of the following components of GDP is not included?
A) net exports B) consumption C) investment D) government spending
"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false
For a country producing two goods, the opportunity cost of one good will be the inverse of the opportunity cost of the other good
a. True b. False Indicate whether the statement is true or false
Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates. Suppose current taxes are cut and that individuals expect future taxes to decrease. Given this information, we know with certainty that
A) current output and the current interest rate will both increase. B) current output will increase. C) the current interest rate will increase. D) the current output effects are ambiguous.