If economies of scale are relatively important in an industry, the typical firm's
A) long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry.
B) long-run average cost curve will begin rising before it reaches minimum efficient scale.
C) long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.
D) marginal cost curve will decline continuously until it reaches minimum efficient scale.
C
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The term "classical" refers to an economic theory which states that over a relatively short period of time, wages and prices will adjust quickly to bring the economy back to full employment
Indicate whether the statement is true or false
Which of the following is true of the crises experienced in the 1990s?
a. Most of the economic crises occurred in Mexico. b. Each of the countries affected by the crisis in Southeast Asia owed substantial long-term debt to foreigners. c. During this time, bank loans were a sizable fraction of GDP in all the crisis countries except Mexico. d. Stock prices dropped by an amount ranging from 21 percent in Malaysia to 35 percent in Korea. e. Exchange rate against the U.S. dollar dropped substantially in the Philippines.
Under the theory of rent-seeking, a monopoly will spend valuable resources to guarantee its monopoly position
Indicate whether the statement is true or false
Refer to the graph shown of a monopolistically competitive firm. The graph shows that:
A. new firms will enter the industry. B. some existing firms will leave the industry. C. the price of the product is $90. D. the industry is in long-run equilibrium.