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:

Repurchases

The action of buying back previously sold shares or goods.

Insider Trading

The trading in shares of a corporation by a person in a corporation who possesses undisclosed privileged information about the corporation.

Tampering Scandal

A situation involving unauthorized alteration or manipulation, often in a legal, sports, or corporate context, that leads to controversy or legal action.

Insider Trade

Buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.