If a firm experiences economies of scale,
a. it moves up along the long run average total cost curve.
b. expansion of output becomes more expensive for the firm.
c. the firm can reduce its per unit cost by producing less.
d. the firm must shut down in the long run.
e. the firm can reduce its per unit cost by expanding production.
e
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Will a home monopolist prefer a quota or a tariff to protect its output?
a. The home monopolist will prefer a tariff, because a tariff allows it to earn higher profits than a quota. b. The home monopolist will prefer a quota, because a quota may allow it to earn higher profits than a tariff. c. It is immaterial to the home monopolist because it will earn the same higher profits with each form of protection. d. The home monopolist will prefer neither, because it earns higher profits in a free-trade situation.
Why do U.S. government loans generally pay a low interest rate?
What will be an ideal response?