The minimum efficient scale is
A) the plant size that yields the most profit.
B) the smallest output level where the firm finally reaches productive efficiency.
C) the level of operation where long-run average costs are lowest.
D) the level of output where diminishing returns have not set in yet.
C
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The total product curve shows the relationship between total product and
A) cost. B) the quantity of labor. C) the average product. D) the marginal product. E) the marginal cost.
The social interest theory of regulation suggests that the political process and regulations will ________ and the capture theory of regulation suggests that the political process and regulations will ________
A) seek to minimize deadweight loss; serve the interests of the producers B) try to maximize the producers' economic profits; seek to minimize deadweight loss C) be unaffected by deadweight loss; increase the firms economic profits D) ignore producers' interests and concentrate on consumers' interests; seek to minimize firms' economic profits