Minimum efficient scale is defined as the level of output at which

A) the firm's long-run average total cost starts falling.
B) all economies of scale are exhausted.
C) the maximum output is produced.
D) diminishing returns affect average total cost.

B

Economics

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When the price of labor increases, the substitution effect will ________ the quantity of labor demanded and the output effect will ________ it

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

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