The United Kingdom started regulating the size of grocery stores in the early 1990s, and today, the average size of a typical UK grocery store is roughly half the size of a typical U.S. two-thirds the size of a typical French store (Haskel and Sadun, 2011). What implications would such a restriction on size have on a store's average costs. Discuss in terms of economics of scale and scope OA Grocery store size does not affect the long-run average cost of production if there are economies of scale OB Grocery store size does not affect the long-run average cost of production if there are diseconomies of scale. C. The long-run average cost of production for UK grocery stores is lower if there are diseconomics of scale Oo. The long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scale. OE. The long-run average cost of production for U.K. grocery stores is higher if there are no economies of scale Assume smaller grocery stores produce fewer goods jointly OA Grocery store size does not affect the long-run average cost of production if there are diseconomies of scope. B. The long-run average cost of production for UK grocery stores is higher if there are no economies of scope OC. Grocery store size does not affect the long-run average cost of production if there are economies of scope OD. The long-run average cost of production for UK grocery stores is lower if there are diseconomics of scope OE The long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scope
The United Kingdom started regulating the size of grocery stores in the early 1990s, and today, the average size of a typical UK grocery store is roughly half the size of a typical U.S. two-thirds the size of a typical French store (Haskel and Sadun, 2011). What implications would such a restriction on size have on a store's average costs. Discuss in terms of economics of scale and scope OA Grocery store size does not affect the long-run average cost of production if there are economies of scale OB Grocery store size does not affect the long-run average cost of production if there are diseconomies of scale. C. The long-run average cost of production for UK grocery stores is lower if there are diseconomics of scale Oo. The long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scale. OE. The long-run average cost of production for U.K. grocery stores is higher if there are no economies of scale Assume smaller grocery stores produce fewer goods jointly OA Grocery store size does not affect the long-run average cost of production if there are diseconomies of scope. B. The long-run average cost of production for UK grocery stores is higher if there are no economies of scope OC. Grocery store size does not affect the long-run average cost of production if there are economies of scope OD. The long-run average cost of production for UK grocery stores is lower if there are diseconomics of scope OE The long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scope
Chapter9: Perfect Competition
Section: Chapter Questions
Problem 9QP
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Transcribed Image Text:The United Kingdom started regulating the size of grocery stores in the early 1990s, and today, the average size of a typical UK grocery store is roughly half the size of a typical U.S. store and
two-thirds the size of a typical French store (Haskel and Sadun, 2011).
What implications would such a restriction on size have on a store's average costs. Discuss in terms of economics of scale and scope.
OA. Grocery store size does not affect the long-run average cost of production if there are economies of scale.
B. Grocery store size does not affect the long-run average cost of production if there are diseconomies of scale
c. The long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale
Oo. The long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scale.
OE. The long-run average cost of production for U.K. grocery stores is higher if there are no economies of scale
Assume smaller grocery stores produce fewer goods jointly
A. Grocery store size does not affect the long-run average cost of production if there are diseconomies of scope.
B. The long-run average cost of production for U.K. grocery stores is higher if there are no economies of scope
OC. Grocery store size does not affect the long-run average cost of production if there are economies of scope
OD. The long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scope
OE. The long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scope.
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