Which statements are true regarding economies of scale? Choose one or more: A. Economies of scale typically cause an industry to be perfectly competitive. B. To maximize profits, a monopoly that occurs because of economies of scale should produce an output so that marginal revenue equals marginal costs. C. A firm that has economies of scale sees its average total costs decrease when production increases. D. When a firm has a natural monopoly, it has that type of monopoly because of economies of scale.
Which statements are true regarding economies of scale? Choose one or more: A. Economies of scale typically cause an industry to be perfectly competitive. B. To maximize profits, a monopoly that occurs because of economies of scale should produce an output so that marginal revenue equals marginal costs. C. A firm that has economies of scale sees its average total costs decrease when production increases. D. When a firm has a natural monopoly, it has that type of monopoly because of economies of scale.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Which statements are true regarding economies of scale?
Choose one or more:
A. Economies of scale typically cause an industry to be perfectly competitive.
B. To maximize profits, a monopoly that occurs because of economies of scale should produce an
output so that marginal revenue equals marginal costs.
C. A firm that has economies of scale sees its average total costs decrease when production
increases.
D. When a firm has a natural monopoly, it has that type of monopoly because of economies of scale.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Face072f7-93a0-4059-8401-fe849aaafdcd%2F034de35d-a896-41fa-9d1e-84fe66d0b026%2Fg5b64g3.jpeg&w=3840&q=75)
Transcribed Image Text:Which statements are true regarding economies of scale?
Choose one or more:
A. Economies of scale typically cause an industry to be perfectly competitive.
B. To maximize profits, a monopoly that occurs because of economies of scale should produce an
output so that marginal revenue equals marginal costs.
C. A firm that has economies of scale sees its average total costs decrease when production
increases.
D. When a firm has a natural monopoly, it has that type of monopoly because of economies of scale.
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