For an increasing cost industry, the long-run supply curve has a(n) _____ elasticity of supply.

For an increasing cost industry, the long-run supply curve has a(n) _____ elasticity of supply.
 a. infinite
  b. negative
  c. positive
  d. zero

QUESTION 2

Appendix: An incentive-compatible mechanism for revealing true willingness to pay in a private value auction is
 a. impossible
  b. a Dutch auction
  c. a second-highest sealed bid auction
  d. a sequential auction with open bidding
  e. a discriminatory price all-or-nothing auction.

QUESTION 3

An oral auction
 a. is also called an English auction
  b. is where bidders submit increasing bids until all but one remains
  c. is where the sole remaining bidder wins and pays his winning bid
  d. all of the above

QUESTION 4

Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves because:
 a. free entry implies that long-run profits will be zero no matter how much each firm produces.
  b. firms seek maximum profits and to do so they must choose to produce where average costs are minimized.
  c. firms maximize profits and free entry implies that maximum profits will be zero.
  d. firms in the industry desire to operate efficiently.

QUESTION 5

Expectation damages:
 a. leave the parties no worse off than was anticipated under the contract.
 b. are designed to elicit efficient precaution and efficient reliance on promises.
  c. are readily awarded by the courts
 d. a through c
 e. a and c only