Suppose That Minimum Efficient Scale as a Percentage of U

question 227

Multiple Choice

Suppose that minimum efficient scale as a percentage of U.S. consumption is 5 percent in industry X and it is 10 percent in industry Y. It follows that we would expect to find

• A)fewer firms in industry Y than X.
• B)fewer firms in industry X than Y.
• C)bigger firms in industry Y than X.
• D)bigger firms in industry X than Y.
• E)none of the above

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Definitions:

Installment Contract

A contract that requires periodic payments over time for the purchase of goods or services.

Substantial Impairment

Significantly diminished value, function, or condition of an asset or property.

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Perfect Tender Rule

A principle in commercial law that allows buyers to reject goods if they do not meet all contract specifications.