The table represents the monthly output of five companies in the electric scooter manufacturing industry. Minimum efficient scale in this industry is a monthly output of 27,000 electric scooters, and the industry has a typical U-shaped cost curve with no constant returns to scale. Which of these companies are on the downward-sloping portion of the long-run average cost curve? O A. only Dugong, Echidna, and Capybara O B. only Aardvark and Echidna O C. only Dugong and Bandicoot O D. all five companies

Principles of Economics 2e
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Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 8SCQ: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are...
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Company
Aardvark
Bandicoot
Саpybara
Dugong
Echidna
Output
5,000
12,000
8,500
15,000
3,500
The table represents the monthly output of five companies in the electric scooter manufacturing industry. Minimum efficient scale in this industry is a monthly output of 27,000 electric scooters, and the industry has a typical U-shaped long-run average
cost curve with no constant returns to scale
Which of these companies are on the downward-sloping portion of the long-run average cost curve?
O A. only Dugong, Echidna, and Capybara
O B. only Aardvark and Echidna
OC. only Dugong and Bandicoot
O D. all five companies
Transcribed Image Text:Company Aardvark Bandicoot Саpybara Dugong Echidna Output 5,000 12,000 8,500 15,000 3,500 The table represents the monthly output of five companies in the electric scooter manufacturing industry. Minimum efficient scale in this industry is a monthly output of 27,000 electric scooters, and the industry has a typical U-shaped long-run average cost curve with no constant returns to scale Which of these companies are on the downward-sloping portion of the long-run average cost curve? O A. only Dugong, Echidna, and Capybara O B. only Aardvark and Echidna OC. only Dugong and Bandicoot O D. all five companies
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