When There Are External Economies of Scale,an Increase in the Size

question 24

Multiple Choice

When there are external economies of scale,an increase in the size of the market will

• A)decrease the number of firms and lower the price per unit.
• B)increase the number of firms and lower the price per unit.
• C)increase the number of firms and raise the price per unit.
• D)not affect the number of firms,but will lower the price per unit.
• E)decrease the number of firms and raise the price per unit.

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Definitions:

Regression Slope Coefficient

A number that represents the degree of change in the dependent variable for a one-unit change in the independent variable within a regression model.

Simple Linear Regression

A statistical method used to model the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Least Squares Regression

A statistical method used to estimate the coefficients of a regression model by minimizing the differences between observed and predicted values.

Predicted Value

The estimated value based on the predictor variable(s) in a regression analysis.