A market cannot be contestable if
a. very limited economies of scale exist
b. substantial barriers to entry exist
c. the market is perfectly competitive
d. resources can be easily acquired by new firms
e. products are indistinguishable
B
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Income has risen in the simple Keynesian model. This could be the result of:,
a. an equal increase in government spending and taxes. b. an increase in unplanned investment. c. an increase in taxes d. a decrease in autonomous consumption. e. none of the above
Diminishing marginal returns refers to the fact that
a. holding other inputs constant, additional increases in labor lead to smaller changes in output. b. holding other inputs constant, additional increases in labor lead to lower output. c. additional increases in labor always lead to smaller changes in output d. the returns to labor fall as real wages rise.