When a Firm Has an Extremely Large Output,it Will Likely

question 76

Multiple Choice

When a firm has an extremely large output,it will likely experience

• A)both economies of scale and diseconomies of scale.
• B)neither economies of scale nor diseconomies of scale.
• C)economies of scale,but not diseconomies of scale.
• D)diseconomies of scale,but not economies of scale.

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Definitions:

Monopolistically Competitive

A market structure featuring many sellers offering differentiated products, with free entry and exit in the market.

Demand Curve

A graph that illustrates the relationship between the price of a good or service and the quantity demanded by consumers.

Variable Costs

Expenses that change in proportion to the level of production or company activity.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for significant competition based on quality, branding, and price.