External Economies of Scale Can Occur When

question 83

Multiple Choice

External economies of scale can occur when

• A) an industry's firms become more dispersed.
• B) there is a decrease in specialized workers.
• C) firms seek out consultants for technical knowledge.
• D) knowledge of production technology spreads through direct contacts.

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Definitions:

Stackelberg Leader

In economic theory, a firm in a duopoly that sets its output level first, influencing the subsequent decision of another firm.

Cournot Duopoly

A Cournot Duopoly is a market structure where two companies control the entire market for a particular product or service, and each firm chooses its output level assuming that the other firm's decision is fixed.

Cournot Duopolists

Firms in a duopoly market structure that determine their output level assuming the output of their competitor is fixed, named after Antoine Cournot.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at various prices.