Under What Conditions Will a Competitive Firm Continue to Grow

question 46

Multiple Choice

Under what conditions will a competitive firm continue to grow in size?

• A)Until diminishing returns set in.
• B)Until it is just able to cover its variable costs.
• C)As long as other firms do.
• D)Until it achieves minimum efficient scale.
• E)Until it makes an economic profit.

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Definitions:

Marketing Boards

Organizations that control the supply or pricing of certain agricultural products in various countries.

Developing Nations

Countries with a less developed industrial base and a lower Human Development Index compared to more developed countries.

Population Increase

An upward trend in the total number of people living in a specific area, which can affect economic, social, and environmental factors.

Labor Forces

Consists of all the people available to work in an economy, including both the employed and those seeking employment.