A Cartel's Marginal Cost Curve Is the

question 74

Multiple Choice

A cartel's marginal cost curve is the

• A)highest of all the individual firms' marginal cost curves
• B)lowest of all the individual firms' marginal cost curves
• C)horizontal sum of all the individual firms' marginal cost curves
• D)average of all the individual firms' marginal cost curves
• E)product of all the individual firms' marginal cost curves

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Definitions:

Law of Diminishing Returns

An economic principle stating that, holding all else constant, as one input variable is increased, there is a point at which the marginal per unit output starts decreasing.

Diseconomies of Scale

The phenomenon where an increase in production leads to higher per-unit costs, often due to inefficiencies associated with scale.

Output Units

The measurable quantities or volumes of goods or services produced by a company or industry.

Minimum Efficient Scale

The smallest scale of production where long-term average cost is minimized, helping businesses realize economies of scale.