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Evidence suggests that as the amount of market power possessed by the firms in an industry

Evidence suggests that as the amount of market power possessed by the firms in an industry increases, the amount of X-inefficiency will decrease.

66) All else constant, an increase in the level of competition among firms would be expected to reduce the amount of X-inefficiency that exists in a particular industry.

67) Labor resistance can be a major impediment to increased productivity in many firms.

68) One of the major motivations for labor resistance to productivity enhancing changes in a production process is the resulting threat to job security.

69) An increase in the number of people in the United States with health insurance could cause the cost of providing health care services to increase as the incentive for health care providers to minimize costs decreases.

70) There is considerable evidence to support the assertion that legislated input combinations have reduced the costs of production in affected industries.

71) In the long-run average cost function, only the amount of capital is allowed to vary.

72) When a firm is experiencing economies of scale, the minimum point of the firm's short-run average total cost curve shifts down as it expands its scale of production.

73) Assume that as a firm expands its scale of operation, the minimum point of its short-run average total cost curve is unchanged. In this case, we would say that the firm is experiencing diseconomies of scale.

74) Diseconomies of scale are illustrated graphically by an upward shift of the firm's long-run average cost curve.

Dec 07 2019 View more View Less

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