What is a firm's minimum efficient scale?
What will be an ideal response?
Minimum efficient scale is the smallest quantity of output at which long-run average cost reaches its lowest level. If the long-run average cost curve has the typical U shape, the minimum point of the LRAC identifies the level of output that represents the firm's minimum efficient scale.
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Which of the following is a characteristic of a perfectly competitive market?
a. a few large firms b. firms producing specialized products in order to attract consumers c. each individual firm having some control over the market price d. a large number of small firms
Federal government budget deficits
A. tend to increase when the economy enters a recession. B. have tended to increase in the majority of years since 1980. C. have caused a growing national debt. D. have all of these characteristics.