In a perfectly competitive model a) economies of scale are large relative to the size of the market since average costs rise rapidly if a firm increases output beyond a relatively large amount. b) economies of scale are large relative to the size of the market since average costs remain constant if a firm increases output beyond a relatively large amount. c) economies of scale are small relative to the size of the market since average costs rise rapidly if a firm increases output beyond a relatively small amount. d) economies of scale are small relative to the size of the market since average costs remain constant if n firm increases output beyond a relatively small amount.

In a perfectly competitive model a) economies of scale are large relative to the size of the market since average costs rise rapidly if a firm increases output beyond a relatively large amount. b) economies of scale are large relative to the size of the market since average costs remain constant if a firm increases output beyond a relatively large amount. c) economies of scale are small relative to the size of the market since average costs rise rapidly if a firm increases output beyond a relatively small amount. d) economies of scale are small relative to the size of the market since average costs remain constant if n firm increases output beyond a relatively small amount.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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