Minimum efficient scale refers to the lowest level of output at which
A) the firm can earn a profit.
B) average cost is minimized.
C) the firm will operate.
D) the average cost curve is downward sloping.
Question 2
A monopsonist purchaser of labor that could negotiate a different wage for each worker could
A) purchase less labor than a regular monopsonist.
B) purchase more labor than a regular monopsonist.
C) rotate the marginal expenditure curve to the left.
D) shift the marginal expenditure curve to the left.
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