If in some range of production average cost is falling, the firm is experiencing
a. increasing returns to scale.
b. decreasing returns to scale.
c. constant returns to scale.
d. increasing costs per unit of output.
a
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The net benefits of entering into an OCA are calculated by:
A) measuring the symmetry between the political structures of the nations. B) measuring the variability of exchange rates between the nations. C) comparing the efficiency benefits of market integration versus the costs of abandoning discretionary monetary policy. D) comparing the trade balances between the nations with growth in GDP for each nation.
Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2
Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the total output, Q, is A) 30. B) 45. C) 60. D) 90.