Economies and diseconomies of scale explain:
A. the profit-maximizing level of production.
B. why the firm's long-run average total cost curve is U-shaped.
C. why the firm's short-run marginal cost curve cuts the short-run average variable cost curve
at its minimum point.
D. the distinction between fixed and variable costs.
Answer: B
Economics
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Average-cost pricing for a natural monopoly will: a. result in the socially efficient level of output
b. result in a less than socially efficient level of output. c. result in a greater than socially efficient level of output. d. result in the firm suffering economic losses.
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State and briefly define the tools of monetary policy available to the Federal Reserve.
What will be an ideal response?
Economics