If Minimum Average Cost Is the Same Over a Large

question 119

Multiple Choice

If minimum average cost is the same over a large range of output,

• A)the market will evolve into a natural monopoly
• B)minimum efficient scale is large as well
• C)only a few large firms will survive in the long run
• D)smaller firms have a cost advantage over larger firms
• E)firms of varying sizes can coexist

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