If Economies of Scale Are Relatively Unimportant in an Industry

question 8

Multiple Choice

If economies of scale are relatively unimportant in an industry, the typical firm's long-run average total cost curve will reach a minimum at a level of output that is a ________ fraction of total industry sales.The industry will be ________.

• A)large; competitive
• B)large; an oligopoly
• C)small; competitive
• D)small; an oligopoly

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Definitions:

Bayer Aspirin

A brand of aspirin produced by the Bayer company, used as an analgesic for pain relief, fever reduction, and anti-inflammatory purposes.

Phonetic Associations

The relationship between sounds and meanings in language, which can influence brand name perception and memory.

Semantic Associations

Connections between words or phrases based on their meanings, which contribute to our understanding of language and context.

Family Branding Strategy

A marketing approach where a company uses one brand name for all its products in a product class, creating a unified brand identity.