A Firm That Has Economies of Scale

question 187

Multiple Choice

A firm that has economies of scale:

• A)at lower levels of output and then encounters diseconomies of scale at higher levels of output is a natural monopoly.
• B)over the entire range of output demanded is called a natural monopoly.
• C)at any particular level of output is called a natural monopoly.
• D)has a continually rising long-run average cost curve.

Identify the effects of price changes on quantity demanded.

Comprehend the effect of external factors on shifts in demand curves.

Understand the concept of movement along versus shifts in the demand curve.

Identify the effects of complementary and substitute goods on demand.

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Definitions:

Social Releaser

A stimulus originating from one individual that triggers a social response or behavior in another individual.

Male Courtship Ritual

Involves the behaviors and activities performed by males in a species to attract a mate.

Consummatory

Relating to the completion of an action or process, such as the act of consuming food or drink.

Appetitive

Refers to behaviors or processes associated with seeking out and approaching positive or desired stimuli.