It is possible that if a monopoly is broken up, the cost of production for that product could increase.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks
A) $15,000 B) $375,000 C) $750,000 D) $1,500,000
Consider the total cost of traveling from point A to point B
The cost of traveling by car would include the cost of gasoline and the opportunity cost of time; the cost of hopping on a bus would include the bus ticket and the opportunity cost of time. Assume that the bus ticket costs less than the gasoline. Does this imply that using a bus to get to the destination involves lower total costs than getting there by car? What if the bus doesn't take the fastest route from point A to point B?
If a firm experiencing "economies of scale" decreases its output, its long-run average cost will decrease
a. True b. False
Explain with examples the reasoning behind the positive slope of the LRAC curve at higher levels of output