Consider an unregulated monopoly in Figure 8.13. If we look at the firm's long-run average cost, the firm is exhibiting:
A. diseconomies of scale.
B. diminishing returns.
C. economies of scale.
D. increasing returns.
Answer: C
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Refer to the table above. What is the marginal product of the sixth worker?
A) 20 pairs of shoes B) 46.7 pairs of shoes C) 60 pairs of shoes D) 280 pairs of shoes
A tax on a product causes a deadweight loss because: a. some consumer surplus is transferred from buyers to producers
b. some producer surplus is transferred from producers to consumers. c. some consumer and producer surplus is transferred to the government. d. it distorts the incentives of producers and consumers so that the efficient level of output is not produced.
You have a retirement account in a bank that has failed. The balance in your account is $330,000. Does it make a difference to you if FDIC uses the payoff method or the purchase-and-assumption method for resolving this insolvency? Explain.
What will be an ideal response?
In ________ markets, large oligopolistic firms end up behaving like perfectly competitive firms.
A. monopoly B. contestable C. blocked D. monopolistically competitive