Refer to Figure 13-13. Economies of scale are exhausted at which ...

[mp14]

Refer to Figure 13-13. Economies of scale are exhausted at which output level?
 
  A) Q1 units B) Q2 units
  C) Q3 units D) more than Q1 units

Question 2

Refer to Table 14-2. For each firm, is there a better outcome than the current situation in which each firm charges the low price and earns a profit of 7,000?
 
  A) Yes, the firms can implicitly collude and agree to charge a higher price.
  B) Yes, each firm can implicitly agree to increase output and not to deviate from a low price.
  C) No, there is no incentive for each firm to consider any other strategy.
  D) No, any other strategy hurts consumers.

[Shshxj]

Answer to Question 1

C

Answer to Question 2

A

[mp14]

Thanks for the timely response, appreciate it

[Laurenleakan]

YES! Correct, THANKS for helping me on my review