The automobile industry is
a. in monopolistic competition because brand names are important
b. in monopolistic competition because it has economies of scale
c. in monopolistic competition for legal reasons
d. an oligopoly because each firm must produce a large amount of output before it can achieve low average costs
e. an oligopoly for legal reasons
D
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The table below shows how the output of wool fabric varies with the number of workers employed in a factory. The average product of workers in this factory
a. declines steadily from 15 yards of fabric per worker per day to 10 yards of fabric per worker per day, as employment in the factory is increased from 1 to 7 workers. b. is maximized when 3 workers are employed per day. c. is maximized when 2 workers are employed per day. d. is equal to 20 yards of fabric per worker per day, no matter how many workers are employed per day.
A crowding-in effect occurs
A. When an increase in government spending leads to an increase in savings. B. When increased government borrowing reduces the quantity of funds that businesses can borrow. C. That increases investment each time government spending increases. D. When the increase in GDP caused by the increased government spending makes businesses see more investment projects as profitable.
The law of one price states that if transportation costs are relatively small, then the:
A. nominal exchange rate for a currency must equal the real exchange rate for that currency. B. nominal exchange rates for every country's currency must be equal. C. price of an internationally traded commodity must be the same in all locations. D. producer with the lowest opportunity cost should be the only producer any commodity.
The number of highly skilled and knowledge workers entering the workforce increases when
(a) firms substitute capital for high priced labor. (b) the market demands labor with advanced degrees. (c) the government cuts educational funding. (d) All of the above