Figure 10-4
Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S3, the firm is
a.
going to shut down.
b.
incurring losses.
c.
earning zero economic profits.
d.
earning economic profit greater than zero.
a
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Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete(s) the sentence?
a. Only II. b. All except III. c. I and II, but not III and IV. d. I and IV, but not II and III
Which of the following topics is not a part of a typical scenario plan?
a. Expected changes in country infrastructure. b. Expected changes in labor-management relations. c. Expected changes in government intervention and regulations. d. Expected changes in budgets and capital budgeting projects. e. Expected changes property rights, tax policies, and risks.