If the minimum efficient scale of a firm is small relative to the demand for the good, then__. Select one: a. firms have a minimum efficiency and could do better by producing more. b. many small firms can enter the market. c. there will be no economic profits for any small firms, so no new firms will enter. d. several large firms will enter the market thereby reducing competition.
If the minimum efficient scale of a firm is small relative to the demand for the good, then__. Select one: a. firms have a minimum efficiency and could do better by producing more. b. many small firms can enter the market. c. there will be no economic profits for any small firms, so no new firms will enter. d. several large firms will enter the market thereby reducing competition.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Price-searcher Markets With Low Entry Barriers
Section: Chapter Questions
Problem 13CQ
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If the minimum efficient scale of a firm is small relative to the demand for the good, then__.
Select one:
a. firms have a minimum efficiency and could do better by producing more.
b. many small firms can enter the market.
c. there will be no economic profits for any small firms, so no new firms will enter.
d. several large firms will enter the market thereby reducing competition.
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