A firm's minimum efficient scale is defined as
a. the output level at which LRATC first reaches its minimum level
b. any output level at which LRATC is minimized
c. the highest output level at which LRATC takes on its minimum value
d. the output level at which the firm charges its highest price
e. the lowest output level at which the firm can charge a positive price
A
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When the slope of the total product curve is steep, the marginal product is
A) zero. B) negative. C) high. D) low. E) not defined.
For most firms, any of the following could be considered an accident except which one?
A) failing to earn an economic profit B) audit failure C) product failing safety standards D) patent infringement
Sellers in a geographically centralized market have higher transaction costs compared to those in a decentralized market
Indicate whether the statement is true or false
The infant-industry argument is often criticized because
A) it is difficult to determine which industry merits protection. B) it reduces government revenues in the short term. C) it reduces the employment rate. D) it reduces labor productivity in the short term.