Figure 8-7 Which of the Following Is True for Figure 8-7

question 63

Multiple Choice

Figure 8-7
Which of the following is true for Figure 8-7?

• A) Firms in this industry begin to experience diminishing returns to their variable factors at output q ₁.
• B) Between q ₁ and q ₂, firms in this industry experience economies of scale.
• C) Firms producing output rates less than q ₁ or more than q ₂ will find it difficult to survive.
• D) The largest firms in this industry have the lowest per-unit cost.

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Definitions:

White Knight

In a corporate context, a friendly company or individual that acquires a corporation at risk of a hostile takeover.