Which barrier to entry results in the creation of a natural monopoly?
A. legal barriers like government franchises
B. economies of scale
C. ownership of a vital resource
D. patents and copyrights
Answer: B
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Of the two economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely? Which is the most pessimistic? What accounts for the differences?
What will be an ideal response?
Refer to Scenario 10.5. From the perspective of the firm, what is the marginal cost of the 5th garden hose?
A) 4 B) 5 C) 16 D) 12 E) 8
The difference between Capitalism and Socialism is that
a. Capitalism is concerned more about how to slice up the "pie" b. Socialism is concerned with making the "pie" as large as possible c. Capitalism is concerned with making the "pie" as large as possible d. Both A and B
Suppose that MPL = 200 and MPK = 240. If R = 30, then at which of the following wages would the firm want to hire fewer workers and more capital?
A. W = 23 B. W = 24 C. W = 25 D. W = 26