Suppose that minimum efficient scale is approximately 20 percent of maximum potential market demand. In that case,
a. there will be approximately 20 firms in the market
b. we should expect to see a few large competitors
c. we should expect to see many small competitors
d. we should expect a natural monopoly to emerge
e. minimum efficient scale is too small for perfect competition to exist
B
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The Law of Increasing Cost is based upon which of the following?
A. If units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline. B. Economies of scale eventually outweigh diseconomies of scale. C. Resources become more suitable for use in the production process as the output of one good expands. D. All of the choices are true.
Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?
A) inflation B) discouraged workers C) unemployed persons falsely report themselves to be actively looking for a job D) counting people as employed who are working part time, although they would prefer to be working full time
For banks
A) return on assets exceeds return on equity. B) return on assets equals return on equity. C) return on equity exceeds return on assets. D) return on equity is another name for net interest margin.
If the government spends more than it receives in taxes during a given interval, then the result is
A) a balanced budget. B) the gross public debt. C) the net public debt. D) a government budget deficit.