Which of the following is NOT one of the reasons a firm might be expected to experience economies of scale?

A) specialization
B) the dimensional factor
C) improved productive equipment
D) depreciation

Answer: D

Economics

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Profits will be

A. high, regardless of the degree of rivalry if there are no entry barriers. B. low, when the degree of rivalry is high. C. high, when the degree of rivalry is high. D. low, when the degree of rivalry is low.

Economics

Which of the following causes demand to be more elastic with respect to price?

A. Shorter periods of time to adjust to a change in price. B. A higher ratio of price to income. C. Fewer substitutes. D. A steeper demand curve for a given price and quantity.

Economics