Which of the following is true? When the marginal cost is greater than the average cost, there are economies of scale. The average expenditure of a monopsonist is decreasing in the quantity purchased. None of the other statements if true. Positive accounting profits in a long-run competitive equilibrium reflect economic rents from scarce factors of production.

When any of the firms has the market power, that market is considered as imperfect market as there…

Answered: Which of the following is true?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following is true?

		When the marginal cost is greater than the average cost, there are economies of scale.
		The average expenditure of a monopsonist is decreasing in the quantity purchased.
		None of the other statements if true.
		Positive accounting profits in a long-run competitive equilibrium reflect economic rents from scarce factors of production.

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