Multiple Choice
Table 11-8 represents the monthly output of five companies in the electric scooter manufacturing industry.
Minimum efficient scale in this industry is a monthly output of 27,000 electric scooters, and the industry
has a typical U-shaped long-run average cost curve with no constant returns to scale.
-Refer to Table 11-8. Which of the following potential mergers would result in the new company achieving the minimum efficient scale?
A) Bandicoot merges with Capybara and Echidna.
B) Bandicoot merges with Capybara, Aardvark, and Echidna.
C) Dugong merges with Echidna and Capybara.
D) Dugong merges with Aardvark and Echidna.
Correct Answer:
Verified
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