If the minimum efficient scale of a firm is small relative to the demand for the good, then
A) many small firms can compete in the market.
B) several large firms will enter the market thereby reducing competition.
C) there will be no economic profits for any small firms, so no new firms will ever enter the market.
D) the firms already in the market have lower average total cost than any new firm entering the market.
Correct Answer:
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Q3: Which of the following is TRUE regarding
Q4: In perfect competition, the product of a
Q5: Perfect competition implies that
A) there are many
Q6: Which of the following is NOT an
Q7: In perfect competition
A) there are restrictions on
Q9: Which of the following is NOT an
Q10: In a perfectly competitive market, there are
A)
Q11: A perfectly competitive market is characterized by
A)
Q12: Perfect competition arises if the _ efficient
Q13: In perfect competition, restrictions on entry into
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