Refer to the Information Provided in Figure 13

question 16

Multiple Choice

Refer to the information provided in Figure 13.8 below to answer the question that follows. Figure 13.8
-Refer to Figure 13.8. The long-run average cost curve is for the only firm producing electricity, and the market demand for electricity from all buyers is 100,000 kilowatts per hour. Due to economies of scale

• A) it makes economic sense for this firm to be the only producer of electricity.
• B) many firms should be in this industry.
• C) this firm should not be allowed to provide electricity.
• D) the government should take over the electricity market.

---

Definitions:

Inventory

Goods or materials that a business holds for the purpose of selling them or turning them into products for sale.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels or financial transactions.

Non-controlling Interest

The portion of equity in a subsidiary not owned by the parent company, reflecting the interest of minority shareholders.

Subsidiary

A company controlled by another company, often referred to as the parent company.