Assume that as a firm expands its scale of operation, the minimum point of its short-run average total cost curve is unchanged. In this case, we would say that the firm is experiencing diseconomies of scale. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume a monopolist regularly posts price increases three months in advance of when they will take effect. After a small number of new firms enter the market, the original firm continues the practice of announcing price increases in advance. Following the court’s logic in the Ethyl case, the firms in this market would not be […]
Date: September 10th, 2020
All else constant, an increase in the number of buyers in the market for cell phone service would cause: A) equilibrium price and quantity to increase. B) equilibrium price and quantity to decrease. C) equilibrium price to increase and equilibrium quantity to decrease. D) equilibrium price to decrease and equilibrium quantity to increase. ANSWER […]
Date: September 10th, 2020
________ markets transfer funds from people who have an excess of available funds to people who have a shortage. A) Commodity B) Fund-available C) Financial D) Derivative exchange ANSWER C
Date: September 10th, 2020
Diseconomies of scale are illustrated graphically by an upward shift of the firm’s long-run average cost curve. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Increase in business taxes will ________ the expenditure curve: A) decrease. B) increase. C) not change. D) none of the above. ANSWER A
Date: September 10th, 2020
As a currency depreciates: A) exports increase and imports decrease. B) exports decrease and imports increase. C) exports increase and imports increase. D) exports decrease and imports decrease. ANSWER A
Date: September 10th, 2020
Price coordination among firms will be more difficult when there are substantial differences among the cost structures of the competing firms and the technologies they employ. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
One of the primary sources of diseconomies of scale is the inefficiencies associated with managing large scale operations. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
A key factor in producing high economic growth is A) eliminating foreign trade. B) well-functioning financial markets. C) high interest rates. D) stock market volatility. ANSWER B
Date: September 10th, 2020
