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.

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Definitions:

Preexisting Structures

Formations or constructs that were already in place before a specified event or development.

Variations

Differences or deviations in characteristics among individuals within a population or species.

Adaptive Radiation

The evolutionary process by which organisms diversify rapidly into a multitude of new forms, particularly when a change in the environment makes new resources available, creates new challenges, or opens new environmental niches.

Desert Lizards

Reptiles adapted to the arid conditions of desert environments, often exhibiting behaviors and physiological traits for thermoregulation.