The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 26

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-If average costs of production decline with increases in output for a particular large firm in an industry:

• A)many small firms will be more efficient than the single large firm in the industry.
• B)the single large firm will be more efficient than many small firms in the industry.
• C)product diversification will be necessary for the firm to spread its overhead.
• D)diseconomies of scale become significant as its output increases.
• E)its variable cost of production will exceed its fixed costs.

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Definitions:

Liquidate

The process of converting assets into cash or cash equivalents by selling them, often used in the context of dissolving a business.

Partnership Inception

Partnership inception denotes the beginning or creation of a partnership, which is a business entity owned by two or more individuals who share profits, losses, and liabilities.

Principal Location

The main office or site where the central operations of a business are conducted or the primary place of business.

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but not yet compensated for.