In which of the following situations would consideration of the minimum efficient scale of operation suggest that the market should be served by a single firm to minimize production costs?
A) When the LRAC curve slopes downward over the relevant range of output.
B) When the LRAC curve hits its minimum point at a relatively low level of output and then increases and the demand for output is quite large.
C) When the LRAC curve hits its minimum point at a relatively low level of output but then remains constant as the scale of operation is increased and the demand for output is quite large.
D) When the LRAC curve initially increases and then decreases beyond some point.
A
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In first degree price discrimination,
a. each consumer pays the same price. b. all consumer surplus is captured by the seller. c. the seller separates the buyers into different groups. d. the seller charges different prices per unit for different quantities.
Conventional money demand functions tended to ________ money demand in the middle and late 1970s, and ________ velocity beginning in 1982
A) overpredict; overpredict B) overpredict; underpredict C) underpredict; overpredict D) underpredict; underpredict
Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . A decrease in government spending of $1 billion would result in a decrease in GDP of:
a. $0. b. $0.9 billion. c. $1.0 billion. d. $9.0 billion. e. $10.0 billion.
Monopoly firms in contestable markets view the major threat to an exploitation of monopoly power to be
a. government regulation b. antitrust policy c. nationalization d. laissez-faire e. the competition from new entrants