Industries in Which the Firms Have Large Fixed Costs and Small,constant

question 98

Multiple Choice

Industries in which the firms have large fixed costs and small,constant marginal costs will,over time:

• A)have more and more small firms.
• B)see an increase in the average size of firms.
• C)see no change in the average size of firms.
• D)see no change in the average number of firms.

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Definitions:

Fixed Amount

A specific sum of money that does not change or vary under specified conditions.

Gratuitous

Provided without requiring anything in return; given freely or without charge.

Service

The provision of assistance or professional work performed for another person or organization.

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.