In an Industry, When the Cost Curve of a Firm

question 26

Multiple Choice

In an industry, when the cost curve of a firm is upward sloping at low levels of output relative to the market, it implies:

• A)the industry is characterized by constant returns to scale.
• B)the industry has a high degree of competition.
• C)not many firms can operate together in this industry.
• D)the firm can charge a price lower than competition and still cover its costs.