Which of the Following Statements Is TRUE

question 259

Multiple Choice

Which of the following statements is TRUE?

• A) If a firm is experiencing economies of scale, diminishing marginal product has not set in yet.
• B) No firm would ever operate at a level of output for which it experiences diseconomies of scale.
• C) A firm can experience diminishing marginal product and economies of scale at the same time.
• D) Diseconomies of scale is a short-run concept, while economies of scale is a long-run concept.

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Definitions:

Advertise

The action or business of promoting and selling products or services, including market research and advertising.

Dominant Strategy

A strategy in game theory that provides the best payoff to a player, regardless of the opponent's moves.

Firm A

A placeholder name often used to denote a generic business entity in theoretical discussions or examples.

Oligopoly Model

An economic model that describes a market structure in which a few firms dominate the industry and have the ability to influence prices and other market outcomes.