Asked by
Karissa Andrade
on Dec 12, 2024
Verified
In some industries where firms experience declining average total costs over the full range of output that consumers are willing to buy,
A) a smaller firm will always have lower per-unit costs.
B) many firms will tend to emerge from the competitive process.
C) a single large firm will develop, and it will have cost advantages that protect it from potential rivals.
D) a single large firm will develop, and it will buy out any smaller rival firms to avoid the small firms' production at a lower per-unit cost.
Average Total Costs
The sum of all production expenses (both fixed and variable) divided by the total quantity of units created.
Per-Unit Costs
The cost associated with producing or acquiring a single unit of a product or service.
Competitive Process
The dynamic system in which businesses compete with one another for resources, customers, and market share.
- Discuss the impact of economies of scale on market structures and firm size.
Verified Answer
KG
Learning Objectives
- Discuss the impact of economies of scale on market structures and firm size.