Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

Related Mcqs:

Relative to a competitively organized industry a monopoly ?

A. Produces less output, charges higher prices and earns economic profits. B. Produces less output, charges lower prices and earns only a normal profit C. produces more output, charges higher prices and earns economics profits D. produces less output, charges lower prices and earns economic profits...

In the long run ?

A. all firms must make economic profits. B. there are no fixed factors of production C. a firm can vary all inputs, but it cannot change the mix of inputs it uses. D. a firm can shut down, but it cannot exit the industry...

Diminishing marginal return implies ?

A. decreasing average fixed costs. B. decreasing marginal costs. C. decreasing average variable costs. D. increasing marginal costs....

In contestable markets, large oligopolistic firms, end up behaving like ?

A. perfectly competitive firms B. a cartel C. a monopoly D. monopolistically competitive firms....

In monopolistic competition firms achieve some degree of market power ?

A. by producing differentiated products B. because of barriers to exit from the industry C. by virtue of size alone D. because of barriers to entry into the industry...