In some industries, like insurance, both small and very large firms coexist and compete quite effectively in the market. This indicates that the long-run average total cost curve in these industries
a. is "U" shaped.
b. is downward sloping over all levels of output.
c. exhibits constant returns to scale over a wide range of output.
d. exhibits diseconomies of scale beginning at a low rate of output.
C
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The value of the marginal product of a resource is equal to:
a. the marginal revenue of the firm, if the product market is perfectly competitive. b. the market price of the product divided by the price of the resource. c. the market price of the product divided by the marginal product of the resource. d. the marginal revenue product of the resource, if the product market is perfectly competitive. e. the marginal product of the resource divided by the price of the resource.
Studies of Import-Substituting Industrialization (ISI) and related policies show that income growth is
A. works best if there is a single national-champion firm in each industry. B. negatively correlated with outward-oriented policies that are closer to free trade. C. not correlated with either free trade or antitrade policies. D. negatively correlated with antitrade policies like ISI.