The existence of economies of scale is one reason oligopolies exist because
A) a firm is able to increase price leading to increased profits.
B) the marginal cost decreases as output increases.
C) of strategic dependence.
D) as output increases average total cost decreases leading to large-scale firms.
D
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An economy that is an active participant in international trade is
A) an egalitarian economy. B) a closed economy. C) an economy whose currency value fluctuates widely. D) an open economy.
Which of the following is the formula used for computing economic profits?
A) economic profits = total revenue - implicit costs B) economic profits = total revenue - (implicit costs + explicit costs) C) economic profits = total costs - total revenue D) economic profits = total revenue - explicit costs
Slope will vary along a curve (as opposed to a straight line)
a. True b. False Indicate whether the statement is true or false
The size distribution of income in Figure 33.1 reveals that
A. The Gini coefficient for Alpha is larger than for Omega. B. Incomes are more equally distributed in Omega than in Alpha. C. People are wealthier in Alpha than in Omega. D. Incomes are more equally distributed in Alpha than in Omega.