Suppose That Minimum Efficient Scale as a Percentage of U

question 72

Multiple Choice

Suppose that minimum efficient scale as a percentage of U.S. consumption is 5 percent in industry X and it is 10 percent in industry Y. It follows that we would expect to find

• A)fewer firms in industry Y than X.
• B)fewer firms in industry X than Y.
• C)bigger firms in industry Y than X.
• D)bigger firms in industry X than Y.

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Definitions:

United States

A country located primarily in North America, consisting of 50 states and a federal district.

Hats

A headwear item designed for various purposes including protection from weather, ceremonial reasons, religious reasons, safety, or fashion.

Production

The method of integrating different physical and non-physical inputs, such as materials and ideas, to produce goods for use.

Opportunity Costs

Missing out on potential benefits from various options due to the selection of a single alternative.