Table 13-17 Consider the Following Table of Long-Run Total Cost for Four

question 252

Multiple Choice

Table 13-17
Consider the following table of long-run total cost for four different firms:
-Refer to Table 13-17. Which firm has economies of scale over the entire range of output?

• A)Firm 1 only
• B)Firms 1 and 2 only
• C)Firm 2 only
• D)Firm 3 only

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others, examples include public parks and national defense.

Nonrival Consumption

A characteristic of certain goods where the consumption by one individual does not reduce availability to others, typical of public goods.

Nonexcludable

A characteristic of a good or service that does not allow the provider to prevent its use by individuals who have not paid for it.

Police Officers

Law enforcement personnel responsible for maintaining public order, preventing and detecting crime, and enforcing laws.