Economies and diseconomies of scale explain:
A. why the firm's long-run average total cost curve is U-shaped.
B. the distinction between fixed and variable costs.
C. the profit-maximizing level of production.
D. why the firm's short-run marginal cost curve cuts the short-run average variable cost curve at its minimum point.
Answer: A
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Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price
A) P5 and sell Q1 units. B) P2 and sell Q1 units. C) P3 and sell Q3 units. D) P1 and sell Q4 units.
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A. The inability to find a job even though they are looking. B. A two-week summer vacation. C. A strike. D. The lack of motivation to look for work.