Which of the Following Is True in the Typical Firm

question 90

Multiple Choice

Which of the following is true in the typical firm if economies of scale are relatively important in an industry?

• A)Marginal cost curve will decline continuously until it reaches minimum efficient scale.
• B)Long-run average cost curve will begin rising before it reaches minimum efficient scale.
• C)Long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry.
• D)Long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.

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Definitions:

Cells

Biological units that are considered the smallest living organisms and fundamental building blocks of life.

Sources

Origins or providers of information, data, or resources, used in research, production, or any form of analysis.

Destinations

The intended final location or target where something or someone is directed, often associated with travel, logistics, and distribution.

Analytic Postoptimality

Analysis performed after an optimal solution has been found, to understand how changes to the parameters affect the solution's optimality.