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The ________ at which a firm's long run average cost curve is at its minimum is called the minimum ...

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The ________ at which a firm's long run average cost curve is at its minimum is called the minimum ...

Question 1.

Suppose Fergie's Florist experiences ________ up to a certain point and ________ beyond that point. Its long-run average cost curve is most likely to be U-shaped.

▸ diseconomies of scale; economies of scale

▸ constant returns to scale; economies of scale

▸ diseconomies of scale; constant returns to scale

▸ economies of scale; diseconomies of scale

Question 2.

The ________ at which a firm's long run average cost curve is at its minimum is called the minimum efficient scale.

▸ largest plant size

▸ largest industry size

▸ smallest plant size

▸ average plant size

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 82 times

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