In the late nineteenth century, technological improvements and cheaper transportation in the United States led to
a. a decrease in minimum efficient scale in many industries
b. an increase in minimum efficient scale in many industries
c. an overall reduction in productive efficiency
d. a narrowing of markets
e. price increases in many industries
Question 2
The significance of the minimum point on the average variable cost curve is that
a. it is the profit-maximizing level
b. it is the selling price
c. it is the point of indifference between producing at a loss or shutting down
d. if the firm produces one more unit, its AVC will be less than MC
e. it shows the amount of total cost
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