Import restrictions create an incentive to smuggle
Indicate whether the statement is true or false
TRUE
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When a firm experiences economies of scale, its ________ cost curve slopes ________ as output increases
A) long-run average; downward B) short-run average total; downward C) short-run marginal cost; downward D) long-run average; upward
Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?
A) It maximizes total surplus in a regulated industry. B) The firm produces the efficient quantity. C) The firm's price equals its marginal cost. D) The firm makes an economic profit.
How can changes in the market price of wealth previously acquired alter a country's net foreign wealth?
What will be an ideal response?
Suppose an agent must pay the full marginal cost for an item but splits the marginal revenue with the principal. As a result,
A) joint profit is maximized. B) joint profit is not maximized. C) the agent will not enter into such a contract. D) the agent wishes to sell as many items as he can.