How Will a Firm Know If It Has Grown Too

question 26

Multiple Choice

How will a firm know if it has grown too large,that is,when it has exceeded its minimum efficient scale of production?

• A) Its long-run average costs begin to decrease.
• B) Its long-run average costs begin to increase.
• C) Its market power begins to diminish.
• D) The number of other firms in the market rises.
• E) All of its workers quit and go to work for the competition.

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Definitions:

IQ Tests

IQ Tests are standardized assessments designed to measure human intelligence and cognitive abilities in relation to others.

Flynn Effect

The observed substantial and long-term increase in intelligence test scores measured across the world over the 20th century.

Raw IQ Scores

A measurement of an individual's cognitive abilities without adjustments for age or any other factors.

Flynn Effect

The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in various parts of the world over the 20th century.