If a firm must produce a significant share of market output before low average costs can be achieved, the structure of this industry will tend to be
a. monopolistic competition
b. perfect competition
c. oligopoly
d. either monopolistic competition or oligopoly
e. either perfect competition or monopolistic competition
C
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Which of the following will decrease the demand for coffee?
a. the discovery that caffeine can cause heart problems b. an increase in the price of coffee c. an increase in the price of tea, a substitute for coffee d. a decrease in the prices of coffee makers and coffee cups, complements to coffee
The ability of Nike to spread product development costs over a larger number of units of output arises from:
A. economies of scale. B. minimum efficient scale. C. constant returns to scale. D. diseconomies of scale.
The gridlock and smog that are associated with traffic in large cities are considered:
A. direct costs. B. business costs. C. external costs. D. equilibrium costs.
The marginal propensity to consume must always be larger than the marginal propensity to save.
Answer the following statement true (T) or false (F)