A Firm's Efficient Scale Is the Quantity at Which ________

question 106

Multiple Choice

A firm's efficient scale is the quantity at which ________ is a minimum.
A firm has excess capacity if it produces ________ its efficient scale.
In the long run,a firm in monopolistic competition produces less than the efficient scale and has excess capacity because the firm faces a ________ demand curve.

• A)average total cost;below;downward-sloping
• B)marginal cost;above;horizontal
• C)average total cost;above;downward-sloping
• D)marginal cost;below;horizontal
• E)average variable cost;below;downward-sloping

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Definitions:

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