Which of the following firms are more likely to exhibit economies of scale and be a...
Which of the following firms are more likely to exhibit economies of scale and be a natural monopolist
a) One with large fixed costs and large marginal costs.
b) One with large fixed costs and small marginal costs.
c) One with small fixed costs and small marginal costs.
d) One with small fixed costs and large marginal costs.
Homework Answers
The correct option is b. One with large fixed costs and small marginal costs.
Explanation-
Economies of scale exists when average costs falls as the scale of production grows.
Add Answer to:
Which of the following firms are more likely to exhibit
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2. Which of the following is correct? A. A purely competitive firm is a "Price Taker," while a monopolist is a "Price Maker." B. A purely competitive firm is a "Price Maker," while a monopolist is a "Price Taker." C. Both purely competitive and monopolistic firms are "Price Takers." D. Both purely competitive and monopolistic firms are "Price Makers." 3. Which of the following is not a barrier to entry? A. Economies of Scale B. Ownership...
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