Suppose the Technology of an Industry Is Such That the Typical

question 119

Multiple Choice

Suppose the technology of an industry is such that the typical firm's minimum efficient scale is 8000 units per month at an average long-run cost of $5 per unit.If the total quantity demanded at a price of $5 per unit is 8500 units per month,the likely result would be

• A)a cartel.
• B)a concentrated oligopoly.
• C)a natural monopoly.
• D)price discrimination.
• E)perfectly competitive firms.

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Definitions:

Undated

Not having a specified date, which can pertain to documents, events, or items that lack a temporal reference.

Nonnegotiable

Referring to an instrument, term, or condition that cannot be transferred or altered by agreement between the parties involved.

Maker

The party in a financial instrument, like a check or promissory note, who is responsible for the payment of the amount specified.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and to a specific person or bearer.