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.

Recognize the degree of authority partners have in managing partnership affairs and in binding the partnership to third parties.

Understand the consequences of partners' wrongful acts and misrepresentations on the partnership and third parties.

Know the priority of claims in the payment of liabilities upon the winding up of a partnership.

Understand the concept of dissociation and its effects on partnerships.