Consider a U-Shaped Long-Run Average Cost Curve That Has a Minimum

question 178

Multiple Choice

Consider a U-shaped long-run average cost curve that has a minimum efficient scale at 6,000 units of output.In this case, this industry would be

• A)perfectly competitive if the market quantity demanded is 20,000 units.
• B)monopolistically competitive if the market quantity demanded is 12,000 units.
• C)an oligopoly if the market quantity demanded is 18,000 units.
• D)an oligopoly if the four-firm concentration ratio is more than 10 percent.

---

Definitions:

Wartime Economy

An economic phase in which a country's economy is significantly influenced or dominated by the demands of war production, often leading to rapid changes in manufacturing and labor.

Wartime Revenue Acts

A series of laws enacted to increase federal revenue to fund military operations during times of war, often involving taxes on income, profits, or goods.

Income Tax

A tax levied by the government directly on individuals' or entities' income.

Labor Force

The total number of people, both employed and unemployed, who are actively looking for work.