If Minimum Efficient Scale Is Small Relative to the Maximum

question 82

Multiple Choice

If minimum efficient scale is small relative to the maximum potential market,

• A)relatively large firms will have a cost advantage over relatively small firms
• B)the market price will be low
• C)relatively small firms will have a cost advantage over relatively large firms
• D)the market price will be high
• E)only one firm will survive in the long run.

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Definitions:

Nitrate

A polyatomic ion with the chemical formula NO3-, commonly found in fertilizers and an essential nutrient for plant growth.

Plants

Multicellular organisms that typically produce their own food through photosynthesis and have cell walls made of cellulose.

Uptake

The absorption or intake of substances by the cells or biological membranes.

Nutrients

Essential substances that organisms need to acquire from their environment to maintain health, growth, and reproduction.