If an Industry's Long-Run Average Total Cost Curve Has an Extended

question 282

Multiple Choice

If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that

• A)technology precludes both economies and diseconomies of scale.
• B)the industry will be a natural monopoly.
• C)both relatively small and relatively large firms can be viable in the industry.
• D)the industry will comprise a very large number of small firms.

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Definitions:

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Physical Space

The tangible and physical environment or area in which objects and activities occur and interact.

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Financial support given to a failing business or economy to prevent its collapse, often involving loans, grants, or subsidies from the government or other institutions.