Use the Following to Answer Question

question 145

Multiple Choice

Use the following to answer question:
-(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.

• A)diseconomies of scale
• B)constant returns to scale
• C)economies of scale
• D)negative costs of production

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Definitions:

Purely Competitive

A market situation characterized by a large number of small firms, no barriers to entry or exit, homogenous products, and perfect information among buyers and sellers, leading to the efficient allocation of resources.

Imperfectly Competitive

A market structure where individual sellers have some control over the prices due to lack of perfect competition.

Wage Rate

The amount of compensation a worker receives per unit of time (e.g., hour, day) or per unit of output.

MRP Curve

Represents the Marginal Revenue Product curve, showing the additional revenue generated by employing one more unit of input, like labor or capital.