When it takes one firm in an industry to produce the quantity necessary to realize low unit costs, the industry
A) experiences economies of scale.
B) has barriers to entry due to ownership of resources.
C) has no barrier to entry.
D) has a license granted by the government.
A
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The price of bananas will increase in response to:
A. an excess demand for bananas. B. an increase quantity of bananas supplied. C. an excess supply of bananas. D. an increase in the supply of bananas.
Which of the following did not help Thailand maintain its peg against the dollar in the 1990s?
A) borrowing dollars from the International Monetary Fund in exchange for baht B) foreigners selling off new investments in Thailand C) increasing domestic interest rates to attract more foreign investors D) buying baht on the foreign exchange market to support higher demand for the baht
Any two of these events in questions 1 and 2 occur together? (Draw the diagrams!)
What will be an ideal response?
The amount of government expenditures on a project or program should continue to increase for as long as the marginal benefits exceed the marginal costs
a. True b. False Indicate whether the statement is true or false