If an industry's long-run per-unit costs are constant as its output increases then
A) the firm's long-run economic profits must be greater than zero.
B) the firm is most likely a decreasing-cost industry.
C) the firm is most likely an increasing-cost industry.
D) the firm is most likely a constant-cost industry.
Answer: D
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John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance that he could lose all his wealth, what is his expected wealth?
A) $0 B) $2,000 C) $17,000 D) $18,000
A characteristic of outsourcing is
a. completely unrelated to vertical integration b. likely to be profitable exactly when vertical integration is unprofitable c. it prevents a firm from focusing on its core competencies d. it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain