Suppose You Are a Plumber and Plumbers Are Not Required

question 173

Multiple Choice

Suppose you are a plumber and plumbers are not required to be licensed.A government official proposes to license plumbers,with practicing plumbers automatically receiving a license.Under the proposal,new plumbers would have to pass a challenging test in order to receive a license.If the proposed law passes,you can expect

• A)plumbing errors to become a thing of the past.
• B)much additional competition as new entry occurs.
• C)increased respect for your profession.
• D)greater market power and less competition.
• E)lower prices for plumbing services.

Understand the concept of economies of scale and scope.

Comprehend the learning curve and its implications for production costs.

Analyze long-run cost functions and their dependencies on output and experience.

Calculate optimal input combinations given a production function and budget constraints.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Speedy Transport

refers to the rapid movement of goods or individuals from one location to another, often emphasizing efficiency and minimal delay.

Emerging Trends

New developments or patterns that are likely to influence a particular area of interest or activity in the near future.

Weak Culture

An organizational state where shared values, beliefs, and practices are minimally embedded, leading to inconsistency in behavior and potentially impacting performance negatively.