How do economies of scale contribute to the development of an oligopoly?
A) Economies of scale make it legally difficult for new firms to enter.
B) Economies of scale make small-scale producers inefficient.
C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry.
D) Economies of scale are guaranteed when a patent is granted.
Answer: B) Economies of scale make small-scale producers inefficient.
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The new laws associated with health care reform dictate that 60-year-old patients cannot be charged more than ____ times as 25-year-old patients
a. three b. five c. seven d. ten
The market demand for a gallon of mineral water is P = 10 - .05Q. The producer wants to produce where the elasticity of demand is unity. What price should she charge and what quantity should be sold to achieve that goal?
What will be an ideal response?
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A. between 20 and 40 hours per week in the labor market. B. 0 hours in the labor market. C. exactly 40 hours per week in the labor market. D. between 0 and 20 hours per week in the labor market.