The causal view of an industry is that:
A. market performance causes firms to have a certain structure.
B. behavior causes firms to have a certain structure.
C. market performance causes firms to behave in a certain way.
D. market structure causes firms to behave in a certain way.
Answer: D
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The distinguishing features of oligopoly are ________ and a ________ in the industry
A) barriers to entry; large number of firms B) no barriers to entry; few firms C) barriers to entry; few firms D) no barriers to entry; large number of firms
When marginal analysis is used to determine the optimal quantity of accident avoidance, all of the following are true except which one?
A) The sum of the expected cost of an accident and the cost of avoiding accidents is minimized. B) The expected marginal benefit of accident avoidance exceeds the marginal cost. C) The total cost of the accident is minimized. D) The expected marginal benefit of accident avoidance equals the marginal cost.
In long-run equilibrium in perfect competition, every firm is producing at minimum average cost.
Answer the following statement true (T) or false (F)
Which of the following would be considered a variable input in the short run? a. The size of a firm's plant
b. The acreage of an apple farmer's orchard. c. The production capacity of a machine. d. None of the above.