If the Minimum Efficient Scale of a Firm Is Small

question 310

Multiple Choice

If the minimum efficient scale of a firm is small relative to the demand for the good, then

• A) many small firms can compete in the market.
• B) several large firms will enter the market thereby reducing competition.
• C) there will be no economic profits for any small firms, so no new firms will ever enter the market.
• D) the firms already in the market have lower average total cost than any new firm entering the market.

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Definitions:

Emission Output

The total quantity of pollutants released into the environment, often measured in the context of industrial operations or vehicle emissions.

Diesel Fuel

A type of fuel derived from petroleum used in diesel engines, known for its energy efficiency.

Environmental Impact

The effect that the actions of individuals, businesses, and industries have on the natural world.

Extended Supply Chain

The inclusion of additional elements in the supply chain, such as second-tier suppliers and distributers, to enhance competitiveness and efficiency.