How Will a Firm Know If It Has Grown Too

question 26

Multiple Choice

How will a firm know if it has grown too large,that is,when it has exceeded its minimum efficient scale of production?

• A) Its long-run average costs begin to decrease.
• B) Its long-run average costs begin to increase.
• C) Its market power begins to diminish.
• D) The number of other firms in the market rises.
• E) All of its workers quit and go to work for the competition.

---

Definitions:

Body Language

Non-verbal communication through body movements, gestures, and facial expressions.

Interference

Disturbance or obstruction of processes, signals, or activities, often leading to a decrease in performance or quality.

Negative Communication

Exchange of information laden with negative emotions, misunderstandings, or conflicts.

Feedback

Information provided as a response to an action or process, used for improvement and adjustment purposes.