If the long-run average cost of producing 50 units of Good X is $3.00 and the long run average cost of producing 51 units of Good X is $3.25, the firm is
A. experiencing economies of scale in the range of 50 to 51.
B. experiencing constant returns to scale in the range of 50 to 51.
C. experiencing diseconomies of scale in the range of 50 to 51.
D. operating at the minimum efficient scale.
Answer: C
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Which of the following statements is true?
A) A monopolist's product often has close substitutes. B) Firms under perfect competition produce differentiated products. C) Firms under monopolistic competition produce identical products. D) Firms under oligopoly produce either identical or differentiated products.
You observe that the demand for pomelo is given by Qd = 8,000-20Pand the supply of pomelo is given by Qs = 2,000 + 20P. What is the market equilibrium for pomelo?
A. P = 150, Q = 5,000 B. P = 500, Q = 16,000 C. P = 200, Q = 3,000 D. P = 50, Q = 2,500