How Will a Firm Know If It Has Grown Too

question 26

Multiple Choice

How will a firm know if it has grown too large,that is,when it has exceeded its minimum efficient scale of production?

• A) Its long-run average costs begin to decrease.
• B) Its long-run average costs begin to increase.
• C) Its market power begins to diminish.
• D) The number of other firms in the market rises.
• E) All of its workers quit and go to work for the competition.

---

Definitions:

Home

The place where one lives permanently, especially as a member of a family or household.

Motherboard

The main printed circuit board (PCB) in a computer that connects together various components, including the central processing unit (CPU), memory, and connectors for input and output devices.

Computer

An electronic device capable of processing and storing data, executing programs, and performing tasks based on user inputs.

Supercomputer

A specially designed computer that can perform complex calculations extremely rapidly; used in situations in which complex models requiring intensive mathematical calculations are needed (such as weather forecasting or atomic energy research).