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omobile industry is , in monopolistic competition because brand names are import

ID: 1128880 • Letter: O

Question

omobile industry is , in monopolistic competition because brand names are important b. in monopolistic competition because it has economies of scale c. in monopolistic competition for legal reasons d. an oligopoly because each firm must produce a large amount of output before it can achieve low average costs e. an oligopoly for legal reasons CHAPTER 11 - Resource Markets 1. Resource owners supply resources in ways that a. maximize their utility b. maximize their income c. minimize the amount of work d. maximize the amount of work e. maximize the demand for their resource 2. As the price of a resource (e.g., labor) decreases, a. demand for that resource increases b. the quantity demanded of that resource decreases c. the supply of that resource increases d. producers are more willing and able to hire that resource e. producers are less willing and able to hire that resource 3. A firm's demand for a resource is a(n) a. final demand b. derived demand c. secondary demand d. induced demand e. marginal demand 4. Economic rent is defined as a. b. c. d. e. the opportunity cost of a resource the payment to a resource in excess of its opportunity cost opportunity cost total earnings the part of a homeowner's housing that is included in GDP accounts

Explanation / Answer

Answer:- why is the automobile industry considered

Correct Answer:- an oligopoly because each firm must produce a large amount of output before it can achieve low average costs

Reason:- Automobile industry has limited number of players and need to produce huge quantity of products

Answer:- Resource owners supply resources in ways that

Correct Answer;- Maximize their utility

Reason:- Resources are supplied to maximize the utility

Answer;- as the price of a resource (e.g. labor) decreases

Correct Answer:- demand for that resource increases

Reason:- Law of demand takes its implementation

Answer:- economic rent is defined as

Correct Answer:- the payment to a resource in excess of its opportunity cost

Reason:- Economic rent is the price paid to the owner above the its normal price