When the minimum efficient scale occurs at a high level of industry output
A. the firms in the industry will be producing in the diseconomies of scale portion of the curve.
B. there will only be a few firms in the industry.
C. there will be a lot of firms in this industry.
D. the government will have to take over the production of the good since it will be unprofitable for firms.
Answer: B
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In the above figure, at what price does a perfectly competitive firm make zero economic profit?
A) $4 per unit B) $8 per unit C) $12 per unit D) $16 per unit
The current price of concert t-shirts is $20 each, and the company has been selling 400 per week. If price elasticity is 2.5 and the price changes to $21, how many t-shirts will be sold per week?
What will be an ideal response?
The pig farm industry is perfectly competitive. Which of the following is true?
a. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. b. The competitive price is higher and quantity lower than the socially efficient point. c. The competitive price is higher and quantity higher than the socially efficient point. d. The competitive price is lower and quantity higher than the socially efficient point.
The price of a gallon of gasoline was $1.35 in 2000 when the CPI equaled 1.68. The cost of a gallon of gasoline was $2.38 in 2016 when the CPI equaled 2.40. The real cost of a gallon of gasoline between 2000 and 2016:
A. decreased. B. may have either increased or decreased. C. remained constant. D. increased.