The Efficient Scale of One Firm Is 20 Units and the Average

question 52

Multiple Choice

The efficient scale of one firm is 20 units and the average total cost at the efficient scale is $30.The quantity demanded in the market as a whole at $30 is 40 units.This market is

• A) a natural duopoly.
• B) a legal duopoly.
• C) a natural monopoly.
• D) a legal monopoly.
• E) monopolistically competitive.

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Definitions:

Operating Activities

Transactions and events that relate to the primary operations of a company, such as sales, purchases, and expenses.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Operating Activities

Cash flows related to the main or core business activities of an entity, such as sales of goods and services.

Notes Payable

A financial obligation or written promissory note requiring the borrower to pay back the lender the principal amount plus any interest by a specified date.