A Firm's Efficient Scale Is the Quantity at Which ________

A firm's efficient scale is the quantity at which ________ is a minimum.
A firm has excess capacity if it produces ________ its efficient scale.
In the long run,a firm in monopolistic competition produces less than the efficient scale and has excess capacity because the firm faces a ________ demand curve.

A) average total cost;below;downward-sloping
B) marginal cost;above;horizontal
C) average total cost;above;downward-sloping
D) marginal cost;below;horizontal
E) average variable cost;below;downward-sloping

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free