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
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
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
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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