Consider a U-Shaped Long-Run Average Cost Curve That Has a Minimum

question 178

Multiple Choice

Consider a U-shaped long-run average cost curve that has a minimum efficient scale at 6,000 units of output.In this case, this industry would be

• A)perfectly competitive if the market quantity demanded is 20,000 units.
• B)monopolistically competitive if the market quantity demanded is 12,000 units.
• C)an oligopoly if the market quantity demanded is 18,000 units.
• D)an oligopoly if the four-firm concentration ratio is more than 10 percent.

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Definitions:

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, responsible for regulating and coordinating body activities.

Endorphins

Neurochemicals in the brain that act as natural painkillers and also boost pleasure, creating feelings of well-being.

Pain-Controlling Chemicals

Substances produced by the body, such as endorphins, that naturally reduce pain through their action on the nervous system.

Body

The physical structure of a person or an organism, including bones, flesh, and organs.