Suppose the Technology of an Industry Is Such That the Typical

question 19

Multiple Choice

Suppose the technology of an industry is such that the typical firm's minimum efficient scale is 18 units per day at an average long-run cost of $1600 per unit.If the total quantity demanded at a price of $1750 per unit is 16 units per month,the likely result would be

• A)a competitive industry.
• B)a cartel.
• C)price discrimination.
• D)a natural monopoly.
• E)a concentrated oligopoly.

---

Definitions:

Weak Power Networks

Networks characterized by limited influence, resources, or connections among its members.

Required Participation

indicates mandatory involvement in an event, process, or system often implemented to ensure engagement or compliance.

Exclusivity

Exclusivity involves situations or agreements that restrict access, membership, or participation to a specific group or entities, often to maintain a level of prestige or quality.

Rational Choice Theory

A framework for understanding and often formally modeling social and economic behavior as the outcome of individual actions that are in each person's self-interest.