If the long-run average cost curve is U-shaped, the optimal scale of production from society's viewpoint is
A) where maximum economic profit is earned by producers.
B) the minimum efficient scale.
C) one which guarantees economic profit.
D) where firm profit is large enough to finance research and development.
B
You might also like to view...
An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record high for onshore energy lease sales in the lower 48 states
What is going on in the rental market for land? A) There is a decrease in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate. B) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to a decrease in the equilibrium rental rate. C) There is an increase in the supply of acreage on the Roan Plateau, leading to an increase in the equilibrium rental rate. D) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate.
The view that well-organized producer groups expect to profit from economic regulation and therefore, persuade public officials to impose restrictions that existing producers find attractive is called?
a. social regulation b. public interest regulation c. special interest regulation d. anti-trust regulation
Which is not considered to be an economic resource?
A. Tools and machinery B. Money C. Labor D. Land (or other natural resources)
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. If Dom's maximizes profits, its ________ equals $320.
A. variable cost B. profit C. total revenue D. total cost