Economies of scale involve
A. economies realized by producing several goods simultaneously.
B. economies in marketing and transportation of many products.
C. economies from being larger and have lower cost per unit.
D. all of the above.
Ans: C. economies from being larger and have lower cost per unit.
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If an environmental group wanted to prevent the habitat destruction of the Wyoming pocket gopher, the Coase theorem would direct the group to
A) try to get laws enacted to protect the species. B) bargain in order to obtain the property rights of the gopher habitat. C) physically block any efforts to destroy the habitat. D) protest the destruction while gaining media attention for their cause.
Refer to Table 14-6. What price will Sturdy Homes charge and what profit does Sturdy Homes expect to make?
A) Price = $12,000; expected profit = $3 million B) Price = $8,000; expected profit = $7 million C) Price = $8,000; expected profit = $4 million D) Price = $10,000; expected profit = $5 million