When it takes one firm in an industry to produce the quantity necessary to realize low unit costs, the industry
A) experiences economies of scale.
B) has barriers to entry due to ownership of resources.
C) has no barrier to entry.
D) has a license granted by the government.
Answer: A
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Opportunity cost can best be defined as the
a. value of what must be given up in order to acquire an item. b. money cost to the buyer to acquire a good or service. c. total value of all the other items that otherwise could be acquired. d. cost to the seller to produce an item. e. time cost to obtain the money to buy an item.
What is the economically efficient level of emissions from a particular source?
a. zero b. the quantity at which the marginal cost to achieve lower emissions equals the additional value of reducing pollution c. the level determined by EPA (Environmental Protection Agency) scientists that will save the most lives d. the level emitted when markets are allowed to function with no government regulation