Much of the research on the minimum efficient scale suggests that for many firms the LRAC...

Much of the research on the minimum efficient scale suggests that for many firms the LRAC curve is:

A) downward sloping over the relevant range of output.

B) upward sloping over the relevant range of output.

C) U-shaped.

D) flat over a relatively large range of output levels.

Answer:

5) Isoquants are convex to the origin due to:

A) the law of diminishing marginal utility.

B) the assumption of the diminishing marginal productivity of each input.

C) the fact that as less capital is used, its marginal productivity falls.

D) the fact that as more labor is used, its marginal productivity rises.

Answer:

6) Which of the following is not a characteristic of perfect competition?

A) Large number of firms in the industry.

B) Outputs of the firms are perfect substitutes for one another.

C) Firms face downward-sloping demand functions.

D) No barriers to entry or exit.

Answer:

7) In the case of the perfectly competitive firm:

A) marginal revenue equals the market price.

B) marginal revenue is greater than the market price.

C) marginal revenue is less than the market price.

D) marginal revenue is equal to, less than, or greater than market price depending on the level of output.

Answer:

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jeff jeffy answered 1 year ago

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