According to the Standard Competitive Model,industries with Increasing Returns Would

question 63

Multiple Choice

According to the standard competitive model,industries with increasing returns would not be profitable.However,economist Paul Romer argues that many industries may be experiencing increasing returns because

• A) many important inputs are common property and therefore equally available to all firms.
• B) many important inputs may be nonrivalrous so that there is no limit to how much they can be used.
• C) of a decline in the number of monopsonistic firms in labor markets.
• D) of an increase in the number of firms that are natural monopolies.

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Definitions:

Negative Message

A negative message is a type of communication that conveys disappointing or unfavorable information to the recipient, often related to denials, rejections, or criticisms.

Subordinate

A lower rank or position in a hierarchy.

Negative Message

Communication that conveys unpleasant, disappointing, or unfavorable information to the recipient.

Describe the Problem

The act of detailing or explaining an issue or challenge clearly and precisely to aid in understanding and resolution.