QUESTION 15

1. A market is not efficient if transaction costs are too high.
2. True
3. False

QUESTION 16

1. Cooperatives exist because markets have failed to attain the competitive ideal.
2. True
3. False

QUESTION 17

1. The existence of economies of scale encourages firms to expand vertically.

1. True
2. False

QUESTION 18

1. The primary motivation for farmers' participation in a cooperative is to improve their well-being.

1. True
2. False

QUESTION 19

1. The existence of economies of size would encourage a cotton farmer to invest available capital in building a cotton gin.
2. True
3. False

QUESTION 20

1. Across different output levels, a firm can experience both economies and diseconomies of scale.
2. True
3. False