Sometimes an old company in an industry can build a large plant that has lower cost per unit than a potential entrant (newcomer) can duplicate. This is an example of a market
A. weakness based on cost.
B. power based on scale economies.
C. weakness based on reputation deficiency.
D. power based on specific assets.
Answer: B
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The stockholders of a corporation have ________ liability and ________ required to pay all of the firm's losses
A) limited; are B) limited; are not C) unlimited; are D) unlimited; are not
The long-run aggregate supply increases as:
a. new production technology is introduced. b. the quality of labor declines. c. the average price level increases. d. natural resources become depleted. e. the minimum wage rate increases.
For the typical student, taking an introductory course in economics should
a. turn the student into an economist. b. teach the student solutions to most social problems. c. teach the student how to answer complex social questions. d. help the student learn to make rational decisions. e. All of the above are correct.
Which of the following is the most efficient way to reduce pollution emissions?
a. Emission standards that cap allowable pollution. b. Government pollution charges or taxes. c. Legislated regulations limiting the quantity of emissions allowed by each firm. d. Enforcement of property rights, when those rights are well-defined and transaction costs are low.