Assume That a fiRm Is Currently Operating at Minimum Efficient

question 5

Multiple Choice

Assume that a firm is currently operating at minimum efficient scale and expands its scale of operations and workforce substantially. Which of the following is most likely to happen?

• A) The firm's average total cost is likely to remain unchanged.
• B) The firm may experience diseconomies of scale.
• C) The firm may become the cost leader in the market.
• D) The firm is likely to experience productivity gains.

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Definitions:

Integral Protein

A type of membrane protein that is permanently attached to the biological membrane.

Outer Boundary

The external limit or edge of a structure or area.

ATP Synthesis

The biochemical process of producing adenosine triphosphate (ATP), which is the primary energy carrier in cells, occurring in both the mitochondria during cellular respiration and chloroplasts during photosynthesis.

Contains DNA

Refers to cells or structures within organisms that hold the genetic material deoxyribonucleic acid.