Figure 6.5 shows the short-run and long-run effects of an increase in demand of an industry. The industry is:
A. a constant-cost industry.
B. an increasing-cost industry.
C. a decreasing-cost industry.
D. There isn't sufficient information.
Answer: B
Economics
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If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?
A) A fixed fee is paid to the agent. B) A fixed fee is paid to the principal. C) An hourly rate is paid to the agent. D) The agent enjoys a share of the profit.
Economics
Alcoa had a monopoly in the U.S. aluminum market from the late nineteenth century until the end of World War II. Which barrier to entry was the source of Alcoa's monopoly power?
a. Ownership of a vital resource. b. Government franchises and licenses. c. Patents and copyrights. d. Economies of scale.
Economics