When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,
A. firm is a single-price monopoly
B. firm is well protected from competition by a legal barrier
C. the firm is a natural monopoly
D. there are close substitutes for the good the firm produces
Answer: C. the firm is a natural monopoly
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What preconceptions do you have of "developing countries"? What do those preconceptions lead you to expect from this course?
What will be an ideal response?
Free riders enjoy:
A. negative externalities from others' choices to pay for a good. B. positive externalities from others' choices to pay for a good. C. positive externalities transferred from consumers who receive subsidies. D. positive externalities from a good they choose to buy themselves.
It is efficient to increase the output of computers if
a. society considers the extra computers more valuable than other goods foregone to produce the computers. b. the opportunity cost of more computers is greater than their marginal utility. c. computer production can be increased only if production of other goods is decreased. d. the price of the computers is equal to their average cost.
Which of the following can be measured by the level of real GDP per person?
a. productivity and the standard of living b. productivity but not the standard of living c. the standard of living but not productivity d. neither the standard of living nor productivity