Competing-interest legislation involves
a. concentrated costs and widespread benefits
b. both widespread costs and widespread benefits
c. both concentrated costs and concentrated benefits
d. widespread costs and concentrated benefits
e. concentrated costs and either widespread or concentrated benefits
QUESTION 2In the long run in monopolistic competition, all economies of scale are exhausted.
a. True
b. False
QUESTION 3The proposed takeover of Tony's Airlines by Plummet Airlines will result in increased profits for Plummet and increased air fares for consumers. This is an example of
a. widespread distribution of benefits and costs
b. concentrated distribution of costs and benefits
c. concentrated distribution of benefits and widespread distribution of costs
d. concentrated distribution of costs and widespread distribution of benefits
e. logrolling
QUESTION 4In the long-run, both perfectly competitive and monopolistically competitive firms will produce at minimum average cost.
a. True
b. False
QUESTION 5In order to dispose of nuclear waste created by power plants around the country, the government buys land in Glowing Gulch, Idaho. Citizens of that town organize to block construction of the nuclear waste facility. Which of the following statements is false?
a. The benefits of the nuclear waste facility are widespread.
b. The costs of the nuclear waste facility are concentrated.
c. The citizens of Glowing Gulch are a special-interest group.
d. Consumers of the power generated at the nuclear plants are not likely to organize to support construction of the nuclear waste facility.
e. The citizens of Glowing Gulch are equally concerned about all public issues.
QUESTION 6In the long-run, firms in a monopolistically competitive market earn zero economic profit.
a. True
b. False
Quick Reply
