In perfect competition, each firm's output is a large fraction of total market supply
a. True
b. False
B
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A free rider is someone who
A) hops on the bus for free. B) enjoys the flowers I have planted and does not compensate me for them. C) creates a negative externality. D) buys a ticket for a movie.
______ occur when a single firm can produce two or more products more cheaply than can two separate firms.
A. Economies of scale B. Economies of scope C. Diseconomies of scale D. Increasing returns to scale
A monopoly which arises from significant economies of scale is referred to as a
A) monopolistic competitor. B) strategic resource monopoly. C) natural monopoly. D) patent monopoly.
A decrease in aggregate demand could be caused by
A. A decrease in the value of the domestic currency. B. A booming economy. C. Expansionary monetary policy. D. Contractionary monetary policy.