35. Economies of scale occur when a firm\'s long-run average total cost curve is

Question

35. Economies of scale occur when a firm's long-run average total cost curve is: A. upward-sloping. B. vertical. C. downward-sloping. D. horizontal. 36. The central characteristic of oligopolistic industries is: A. interdependent pricing decisions. B. flexible prices. C. price competition. D. few or no economies of scale. 37. The graph shown exhibits diseconomies of scale: 64 62 60 e 58 56 Average cost 52 50 48 15 16 17 18 19 20 21 22 23 24 Quantity A. in region a. B. in region b. C. in region c D. over the entire range of output. 38. Which of the following is one of the necessary conditions for perfect competition? A. diminishing utility B. no barriers to entry C. differentiated products D. indivisible setup costs 39. Perfectly competitive firms: A. are price takers, since they are not large enough to influence the market price. B. are individually able to influence the market price. C. will succeed by charging a price higher than that charged by the rest of the market. D. can influence the prices of other firms in the same industry by altering their own prices.

Explanation / Answer

1- economies of scale is when the firms make use of huge production levels as the costs are decreased,

so answer is c

2- the central chatacterstic of oligopolistic industry is that these firms are interedpendent, as these are the few big firms in the market thus decisions are interdependent.s

so answer is A

3- diseconomies of scale occurs when the average costs are increasing, here it is happening in region c

thus answer is C

4-the necessary condition for perfect competition is that there is no barriers to entry , there are large nu,ber of buyer and sellers and any new seller can entrer the market without any restrictions.

so answer is B

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