Related to the Economics in Practice on Page 201: If

question 75

Multiple Choice

Related to the Economics in Practice on page 201: If the long-run average cost curve in an industry has a long, flat section, which of the following must be true?

• A) There is no single point on the curve that is the best.
• B) Small firms have higher average costs than large firms.
• C) Existing firms have no incentive to expand.
• D) There would be no difference between the industry's short-run average cost curve and its long-run average cost curve.

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Definitions:

Audit

An official inspection of an individual's or organization's accounts, typically by an independent body, to verify their accuracy.

Trading Partnership

A Trading Partnership is a legal arrangement where two or more parties agree to conduct business activities together for profit, typically involving the buying and selling of goods or services.

Cash Flow Problems

Financial challenges faced by a business when it does not have enough cash on hand to cover its obligations.

Providing Services

Refers to the act of performing tasks or duties for others, usually in exchange for compensation.