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.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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