A Given Level of Consumer Demand Will Support a Large

question 437

Multiple Choice

A given level of consumer demand will support a large number of producers in an industry if

• A)minimum efficient scale (MES)is very large.
• B)the long-run ATC curve decreases as output levels increase.
• C)diseconomies of scale are already encountered even at low levels of output.
• D)exclusive patents and high government license fees are prevalent in the industry.

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Definitions:

Constant Dividend

A dividend policy by which a company pays out a fixed amount of dividend per share over time, regardless of the company's earnings fluctuations.

Annual Dividend

The annual dividend is the total dividend payment a company pays to its shareholders for the year, often related to its profitability.

Annual Dividend

The total amount of dividends that a company pays to its shareholders for each share they own in a given fiscal year.