In practice, placing a price control on a natural monopoly:
A. is easy and commonly practiced.
B. is difficult because of lack of information.
C. always creates the same outcome as public ownership of the industry.
D. is never a good idea.
B. is difficult because of lack of information.
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Credit is:
A) the loan that a debtor receives. B) the income that an employee earns. C) any good that cannot be consumed but is used for the production of other goods. D) any good that is available for free.
With which country did the Debt Crisis of the early 1980s begin?
A) France B) Mexico C) Argentina D) Japan E) Germany
What are economies of scale?
a. decreasing average costs as production increases b. increasing average costs as production increases c. increasing fixed costs as production increases d. none of the above
On Naomi's pig farm, Naomi hires all the labor used, grows all the grain fed to the pigs, and owns the barn. The costs used to calculate the total cost curve include
a. only the cost of labor. b. only the cost of labor and the cost of grain, which is completely consumed in the period in which it is grown. c. only the variable cost of growing grain. d. the cost of labor, the cost of growing grain, and the opportunity cost of the barn.