Exhibit 10-13 All of the following statements regarding Exhibit 10-13 are true except one.Which is the exception?
A)The firm represented in the exhibit will likely be a perfect competitor.
B)There are economies of scale in this industry.
C)The minimum efficient quantity is 1, 000 units.
D)At 500 units there is excess capacity.
E)A firm too small to produce at least 1, 000 units will have difficulty surviving in this industry.

Question

Exhibit 10-13  All of the following statements regarding Exhibit 10-13 are true except one.Which is the exception?
A)The firm represented in the exhibit will likely be a perfect competitor. 
B)There are economies of scale in this industry. 
C)The minimum efficient quantity is 1, 000 units. 
D)At 500 units there is excess capacity. 
E)A firm too small to produce at least 1, 000 units will have difficulty surviving in this industry.

Quizplus · Accepted Answer

The exhibit does not provide enough information to determine whether the firm represented will be a perfect competitor or not. However, it does provide information on economies of scale, minimum efficient quantity, excess capacity, and the difficulty smaller firms may face in surviving in the industry.

Exhibit 10-13 All of the Following Statements Regarding Exhibit