A Firm That Has Economies of Scale

question 314

Multiple Choice

A firm that has economies of scale:

• A) at low output and but diseconomies of scale at high output is a natural monopoly.
• B) over the entire range of output demanded is a natural monopoly.
• C) at any particular level of output is a natural monopoly.
• D) has a continually rising long-run average cost curve.

Comprehend the concept of product adoption and diffusion in markets.

Identify ethical issues and environmental considerations in product design.

Recognize the significance of test marketing in the product development process.

Understand the strategies to reduce the risk of new-product failure.