In Some Industries Where Firms Experience Declining Average Total Costs

question 169

Multiple Choice

In some industries where firms experience declining average total costs over the full range of output that consumers are willing to buy,

• A) a smaller firm will always have lower per-unit costs.
• B) many firms will tend to emerge from the competitive process.
• C) a single large firm will develop, and it will have cost advantages that protect it from potential rivals.
• D) a single large firm will develop, and it will buy out any smaller rival firms to avoid the small firms' production at a lower per-unit cost.

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Definitions:

Obesity

A health condition marked by an abnormal amount of body fat which elevates the likelihood of facing health issues.

France

A country in Western Europe known for its rich history, cultural landmarks, and significant contributions to art, science, and philosophy.

Underestimate

To judge something to be smaller or less important than it actually is.

Overestimate

To assess something as greater, more important, or more significant than it actually is.