Refer to the information provided in Figure 13.8 below to answer the question that follows. Figure 13.8
-Refer to Figure 13.8. Each electricity producer has the given LRAC curve. The total cost of producing 100,000 kilowatts per hour is minimized with ________ firm(s) in the industry.
A) one
B) ten
C) one hundred
D) Indeterminate from the given information.

Question

Refer to the information provided in Figure 13.8 below to answer the question that follows.  Figure 13.8
-Refer to Figure 13.8. Each electricity producer has the given LRAC curve. The total cost of producing 100,000 kilowatts per hour is minimized with ________ firm(s) in the industry.
A) one 
B) ten 
C) one hundred 
D) Indeterminate from the given information.

Quizplus · Accepted Answer

The total cost of producing 100,000 kilowatts per hour is minimized with one firm in the industry if the LRAC curve indicates economies of scale at this production level, suggesting that a single firm can produce more efficiently than multiple firms.

Refer to the Information Provided in Figure 13