A firm will ________ at the output where marginal cost increases
A. start to experience losses
B. begin to experience diminishing returns
C. begin to experience increasing returns
D. become profitable
Answer: B
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The 10-year protection period from generic competition for drug manufacturers is a form of
A) trademark. B) hallmark. C) patent. D) copyright.
Which of the following is an example of a negative externality?
A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers. B) The opening of a new shopping mall increases the business of nearby restaurants. C) A consumer pays a higher price than another consumer does for the same product. D) Consumers pay a sales tax in addition to the price of a product.
Which of the following best explains why a monopolist's marginal revenue is less than the sale price? a. To sell more units, a monopolist must increase the price on all units sold
b. As a monopolist expands output, its average total cost declines. c. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist. d. When a monopolist reduces price in order to sell more units, it must lower the price of some units that could otherwise have been sold at a higher price.
The definition of human capital refers to
a. worker education and workers' equipment. b. worker education and workers' physical capital. c. workers' equipment and workers' physical capital. d. worker education and worker training.