The minimum efficient scale in the figure below shows that
A. point A is the minimum efficient scale (MES) for the firm.
B. the long-run average cost curve (LAC) reaches a minimum point at B.
C. point B is the minimum efficient scale (MES) for the firm.
D. the minimum efficient scale (MES) illustrates maximum average costs.
Answer: A
You might also like to view...
The resource allocation method used for the online auctions on eBay is
A) market price. B) lottery. C) contest. D) first-come, first-served. E) sharing equally.
Which of the following is a disincentive to leave welfare?
a. decrease in real income b. lower taxes c. higher incomes d. All of these.
A devaluation of a currency means that the exchange rate (price of that currency) has changed to a higher fixed rate
a. True b. False
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that:
A. cable TV and satellite TV are substitutes. B. cable TV and satellite TV are complements. C. satellite TV is a normal good. D. satellite TV is an inferior good.