Author Question: Minimum efficient scale is the level of output at which a. short-run average total cost stops ... (Read 49 times)

lidoalex · **on:** Jun 30, 2018

Minimum efficient scale is the level of output at which
a. short-run average total cost stops decreasing
b. short-run average total cost stops increasing
c. long-run average cost stops decreasing
d. long-run average cost stops increasing
e. profit stops increasing

Question 2

Generally, as a movie theater adds more screens its average costs fall. The movie theater can be said to experience
a. declining profit
b. higher prices
c. diseconomies of scale
d. economies of scale
e. diminishing marginal returns