If a Firm Has a Downward-Sloping Long-Run Average Cost Curve

question 11

Multiple Choice

If a firm has a downward-sloping long-run average cost curve over the entire range of market demand, it is a

• A)local monopoly
• B)resource monopoly
• C)monopsony
• D)output monopoly
• E)natural monopoly

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Definitions:

Constant Competition

A persistent state of rivalry where individuals or groups continually vie for superiority in a specific area.

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Power Distance

A cultural dimension that expresses the degree to which less powerful members of a society accept and expect that power is distributed unequally.

Hofstede's Dimensions

A framework for understanding cultural differences along six dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term orientation vs. short-term normative orientation, and indulgence vs. restraint.