Assuming free competitive land markets, which of the following is FALSE (assuming other factors constant)? aln competitive land markets, agglomeration externalities makes urban areas to be inefficient. bCompetitive firms earn the same economic profits whether they are located in smaller or in larger cities. c Stronger economies of scale makes production more costly in larger urban areas. dAgglomeration economies in production makes wage rates to be higher in larger urban areas.

Assuming free competitive land markets, which of the following is FALSE (assuming other factors constant)? aln competitive land markets, agglomeration externalities makes urban areas to be inefficient. bCompetitive firms earn the same economic profits whether they are located in smaller or in larger cities. c Stronger economies of scale makes production more costly in larger urban areas. dAgglomeration economies in production makes wage rates to be higher in larger urban areas.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 22CTQ: What assumptions about the economy must he true for the invisible hand to work? To what extent are...

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