Bigness, or Large Firms, May Benefit Consumers in Which of the Following

question 120

Multiple Choice

Bigness, or large firms, may benefit consumers in which of the following ways?

• A)Larger firms usually charge lower prices than smaller firms.
• B)Larger firms with monopoly power definitely have greater incentive to be efficient and innovative.
• C)Larger firms may take advantage of economies of scale and scope.
• D)Larger firms are more responsive to consumers' desires.

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Definitions:

Simultaneous Equations

A set of equations containing multiple variables that are solved together since the solution to one equation depends on the solutions of the others.

Additional Costs

Expenses that are not originally planned or budgeted, arising unexpectedly during the production or execution process.

Joint Cost

The cost of the input and process that yields two or more products in fixed proportions as a result. For example, the cost of the barrel of oil and of splitting it into gasoline and motor oil is a joint cost.