Homework Answers
Third option
This is because eventually all firms will be producing and selling the same quantity. In that case market share will be same for every firm and firm will bear the same size as its rival. If law of diminishing returns do not hold, then MP will be straight line and there will be constant returns at every output. Even when MES is small it does not ensure that all firms are producing the same quantity.
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All the firms in an industry will be of roughly the same size in which of...
Which of the following is NOT true about the long run average cost curve (LRAC)? Select...
Which of the following is NOT true about the long run average cost curve (LRAC)? Select one: a. the shape of the LRAC is due to economies and diseconomies of scale b. the LRAC is influenced by the short run average cost curves c. the LRAC represents the least expensive average cost curve for any level of output d. the shape of the LRAC is due to the law of diminishing marginal returns
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
QUESTION 30 A downward-sloping portion of a long-run average total cost curve is the result of:...
QUESTION 30 A downward-sloping portion of a long-run average total cost curve is the result of: economies of scale. diseconomies of scale. diminishing returns. the existence of fixed resources. 2.5 points QUESTION 31 In the long run, firms in many industries often experience a falling average total cost curve as a result of: gains through trade. increasing marginal returns. economies of scale. lower fixed costs. 2.5 points QUESTION 32 A large aircraft manufacturer, like Boeing, may have a...
Question 16 Marginal revenue and price are equal for competitive firms because: price is the same...
Question 16 Marginal revenue and price are equal for competitive firms because: price is the same as average revenue. its demand curve is upward sloping. price is constant for all levels of output. price must decrease as quantity increases. Question 17 2 pts An industry's cost may decrease in the long run due to: constant returns to scale. re-economies of scale. economies of scale. diseconomies of scale. Question 18 2 pts Which of the following is true for a monopolist?...
Part 1: When a firm operates with economies of scale, average production costs: 1) rise when...
Part 1:
When a firm operates with economies of scale, average production
costs:
1) rise when the firm gets larger.
2) fall as the firm gets larger.
3) fall as the firm gets smaller.
4) are unaffected by firm size.
Part 2:
“U-shaped” long-run average cost curves show that as firms get
larger, they usually experience:
1) economies of scale.
2) constant returns to scale.
3) diseconomies of scale.
4) a, b, and c, in that order.
Part 3:
This...
1. Which of the following correctly summarizes the strategy used by firms that employ third-degree price...
1. Which of the following correctly summarizes the strategy used by firms that employ third-degree price discrimination? Group of answer choices a.The firm’s marginal revenue will be lower in the market with the more elastic demand. b.The firm sets the price higher in the market with the more elastic demand. c.The firm sets the price lower in the market with the more inelastic demand. d.The firm’s marginal revenue will be higher in the market with the more elastic demand. e.None...
study guide help (20) 6) Which of the following statements correctly describes the market structure known...
study guide help
(20) 6) Which of the following statements correctly describes the market structure known as perfect competition? There are many buyers and sellers, none of which is large in relation to total sales or purchases. Each firm produces and sells a homogeneous product. There are no barriers to entry or exit. All of the above None of the above and productive (2 pts) 7) In perfect competition, resource allocative efficiency holds in efficiency holds in both the short-run...
If a firm is earning economic losses,
1. If a firm is earning economic losses, a. it also has an accounting loss. b. the owner could be earning more in some other occupation. c. the firm must go out of business in the short run. d. new firms will want to get into that industry. 2. Economists say that a firm has a normal profit when a. it earns a return of at least 10 percent. b. its accounting profit exceeds its implicit costs. c. it can pay all its variable costs. d....
vau AL. If a firm in an industry is granted a patent, then it becomes: Lan oligopoly. B. a pure monopoly. C. a mono...
vau AL. If a firm in an industry is granted a patent, then it becomes: Lan oligopoly. B. a pure monopoly. C. a monopolistic competition. D. a purely competitive. B 32. The minimum efficient scale of a firm: A. is realized somewhere in the range of diseconomies of scale. B. occurs where marginal product becomes zero. C. is in the middle of the range of constant returns to scale D. is the level of output at which long-run average total...
English Common law became the basis for American Common Law. What does the Common Law say...
English Common law became the basis for American Common Law. What does the Common Law say about damages for parties injured by restraint of trade? a. They are not permitted b. Damages can be awarded in full to injured parties c. Triple damages are awarded to injured parties d. Only a fraction of damages will be awarded due to statutory restrictions e. The government could sue for damages on behalf of injured parties, and then give them damages net of...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
Question 16 Marginal revenue and price are equal for competitive firms because: price is the same as average revenue. its demand curve is upward sloping. price is constant for all levels of output. price must decrease as quantity increases. Question 17 2 pts An industry's cost may decrease in the long run due to: constant returns to scale. re-economies of scale. economies of scale. diseconomies of scale. Question 18 2 pts Which of the following is true for a monopolist?...
Part 1:
When a firm operates with economies of scale, average production
costs:
1) rise when the firm gets larger.
2) fall as the firm gets larger.
3) fall as the firm gets smaller.
4) are unaffected by firm size.
Part 2:
“U-shaped” long-run average cost curves show that as firms get
larger, they usually experience:
1) economies of scale.
2) constant returns to scale.
3) diseconomies of scale.
4) a, b, and c, in that order.
Part 3:
This...
study guide help
(20) 6) Which of the following statements correctly describes the market structure known as perfect competition? There are many buyers and sellers, none of which is large in relation to total sales or purchases. Each firm produces and sells a homogeneous product. There are no barriers to entry or exit. All of the above None of the above and productive (2 pts) 7) In perfect competition, resource allocative efficiency holds in efficiency holds in both the short-run...
vau AL. If a firm in an industry is granted a patent, then it becomes: Lan oligopoly. B. a pure monopoly. C. a monopolistic competition. D. a purely competitive. B 32. The minimum efficient scale of a firm: A. is realized somewhere in the range of diseconomies of scale. B. occurs where marginal product becomes zero. C. is in the middle of the range of constant returns to scale D. is the level of output at which long-run average total...
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