Assume That You Observe the Long-Run Average Cost Curve of a Local

question 11

Multiple Choice

Assume that you observe the long-run average cost curve of a local Bookstores, a national chain.Starting from the point on the curve where output is zero and moving to the right, which of the following lists the behaviour of long-run average costs in the correct sequence (that is, which will be observed first, second, etc.) ?

• A)Minimum efficient scale; economies of scale; constant returns to scale; diseconomies of scale
• B)Economies of scale; constant returns to scale; diseconomies of scale; minimum efficient scale
• C)Constant returns to scale; economies of scale; minimum efficient scale; diseconomies of scale
• D)Economies of scale; minimum efficient scale; constant returns to scale; diseconomies of scale

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Definitions:

Respect

The act of showing consideration or appreciation towards others, their feelings, and their rights.

Business

The practice of engaging in commercial, industrial, or professional activities to earn a profit.

Steady Pay

Consistent and regular payments made to employees, typically in the form of a fixed salary or wages.

Self-Employment

The state of working for oneself as a freelance or the owner of a business rather than for an employer.