Related to the Economics in Practice on Page 195: If

question 95

Multiple Choice

Related to the Economics in Practice on page 195: If the long-run average cost curve in an industry has a long, flat section, which of the following must be true?

• A) There is no single point on the curve that is the best.
• B) Small firms have higher average costs than large firms.
• C) Existing firms have no incentive to expand.
• D) There would be no difference between the industry's short-run average cost curve and its long-run average cost curve.

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Definitions:

Compelling Reasons

Convincing or persuasive arguments or factors that provide strong motivation or justification for a particular action or decision.

Potential Objections

Anticipated reservations or criticisms that an audience may have in response to a proposal, idea, or argument.

Intriguing Detail

A fascinating or curious element within a story or piece of information that captures interest.

Unexpected Detail

A surprising or unforeseen piece of information or feature that may alter perceptions or outcomes.