When the minimum efficient scale occurs at a high level of industry output
A) the firms in the industry will be producing in the diseconomies of scale portion of the curve.
B) there will only be a few firms in the industry.
C) the government will have to take over the production of the good since it will be unprofitable for firms.
D) there will be a lot of firms in this industry.
Answer: B
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Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market quantity will be
A) below Q1. B) above Q3. C) between Q1 and Q3. D) Q2.
Which of the following is most likely to be a fixed resource for the Speedy Word Processing and Résumé Company?
a. floppy disks b. typists c. computer terminals d. electricity e. paper
What does the production possibilities frontier imply about the resource allocation?
A. Only some points on the curve are efficient. B. All points on the curve are equally efficient. C. A point that lies below the curve is more efficient. D. A point that lies above the curve is readily achievable.
If the exchange rate (dollars per unit of foreign currency) has increased, we say there has been a(n)
a. appreciation of the foreign currency b. depreciation of the foreign currency c. revaluation of the foreign currency d. devaluation of the foreign currency e. fixing of the foreign currency