10.
The best characterization of a firm that is operating on its long-run average cost curve is when it:
A.
Experiences constant returns to scale
B.
Produces a given output at the least possible cost
C.
Chooses a plant size the minimizes the average fixed cost |
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Ans: B; operating on long-run average cost curve means the firm has lowest cost possible at every output level, so it produces a given output at the least possible cost.
A is incorrect; economies of scale and diseconomies of scale could occur at the same time. Usually, economies of scale dominate at low level of output, and diseconomies of scale dominate at high level of output.
C is incorrect; a firm will choose a plant size that maximize the total profit. |
发表于 2013-9-11 17:43
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