Please move the black dot to the minimum long-run average cost for a fim in an o

Question

Please move the black dot to the minimum long-run average cost for a fim in an oligopoly and the green point to the minimum long-run average cost for a firm in a purely competitive industry. Why is the minimum long-run average cost important in determining an oligopoly? Demand It is at the lowest possible cost of all other firms It occurs at a small 2 O fraction of industry demand It occurs at a large O fraction of industry demand Firms cooperate with each other to achieve that low cost. LRAC-1 LRAC-2 Quantity no Previous Give Up & View Solution Check Answer 0 Next IExit- Hint

Explanation / Answer

The answer is option c because economies of scale operate on a large scale of output this leaves out a small chunk of firms operating in the market.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.