Industries, where economies of scale dictate that only a few firms produce, will be efficient if the markets in which they sell are
A. perfect.
B. contestable.
C. close to each other.
D. protected from entry.
Answer: B
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U.S. exports are
a. not included in U.S. GDP because they are consumed abroad b. included in U.S. GDP because they are produced domestically c. included in U.S. GDP because they represent an increase in inventories d. included in U.S. GDP as government purchases because the government decides what goods may be exported e. not included in U.S. GDP because they are not subject to a tariff
Nastech Pharmaceuticals announced it has developed a nasal spray that would reduce hunger cravings. Other things the same we would expect
a. the demand for existing shares of stock in this company to decrease, so the price would fall. b. the demand for existing shares of stock in this company to increase, so the price would rise. c. the supply of existing shares of stock in this company to decrease, so the price would fall. d. the supply of existing shares of stock in this company to increase, so the price would rise.
Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. There is an excess demand for parks in the neighborhood. B. There is an excess supply of parks in the neighborhood. C. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
Offering contributors private goods such as coffee mugs, books, or magazine subscriptions will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller B. reduce; larger C. increase; smaller D. increase; larger