Consider a Wal-Mart supercenter and a 7-Eleven store. In the long run,

A) Wal-Mart or 7-Eleven may have economies of scale depending on how many customers are served.
B) Wal-Mart will definitely have lower average costs because supercenters serve many more customers.
C) The 7-Eleven store will definitely have lower average costs because their small stores are cheaper to build.
D) Wal-Mart's average total cost will decline faster than the 7-Eleven store and experience diseconomies of scale.
E) The 7-Eleven store's average total cost will be lower than Wal-Mart's and always experience economies of scale.


A

Economics

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Which of the following topics would be covered in microeconomics? a. The effects of an increase in the supply of lumber on the homebuilding industry. b. The unemployment rate

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Cutthroat competition is on the opposite end of the competitive spectrum from

A. covert collusion. B. price leadership. C. open collusion. D. cartels.

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Refer to the diagram. Assuming equilibrium price P 1, consumer surplus is represented by areas:

image

A. a + b.
B. a + b + c + d.
C. c + d.
D. a + c.

Economics