Increased specialization in large firms might lead to:
A. upward-sloping marginal cost curves.
B. horizontal marginal cost curves.
C. downward-sloping long-run average cost curves.
D. upward-sloping long-run average cost curves.
Answer: C
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Providing a good would likely be most difficult when the project involves assembling
A) a few parcels of contiguous land. B) a few parcels of noncontiguous land. C) many parcels of contiguous land. D) many parcels of noncontiguous land.
Normative economics is
a. an event is explained according to the laws of economics. b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone. c. the study of foreign countries. d. the study of our banking system.
If you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $1 million and the non-advertising firm will earn $5 million. If you and your rival plan to hand your business down to your children (and this "bequest" goes on forever), then a Nash equilibrium is for each firm to:
A. always advertise. B. advertise until the rival does not advertise, and then not advertise forever. C. not advertise until the rival does, and then to advertise forever. D. never advertise.
Net exports are
A. exports minus debt. B. exports minus imports. C. exports minus marginal product. D. exports divided by population.