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Solution Library
Exception For Competitive Market Structure And Firm’s Economies Of Scale
Question
1. The competitive market structure assumes all of the following except:
A) ease of entry and exit.
B) identical products.
C) a small number of buyers and sellers.
D) zero economic profit in the long run.
2. When a firm experiences economies of scale:
A) its long-run average total costs increase as output increases.
B) its long-run average total costs remain the same as output increases.
C) it can take advantage of specialization of labor and management.
D) it runs into bureaucratic red tape.
Summary
These multiple choice questions belong to Economics. The 1st question is about the exception for competitive market structure and the 2nd question is about the economies of scale a firm experiences.
Total Word Count NA
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