A firm enjoying economies of scale is said to be
reducing average cost as production increases
benefiting from the activities of other firms
maximizing profits as production increases
having an upward-sloping average cost curve
The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing
increasing efficiency
economies of scale
diseconomies of scale
increasing marginal returns
An industry's supply curve is more likely to be elastic when firms are
enjoying free entry and exit
operating at full capacity
operating below capacity
maximizing profits
One of the characteristics of monopolistic competition is that
there is mobility of factors of production
no single seller dominates the market
the firms are price-takers
consumers have perfect knowledge of price
The demand curve for factors of production
is perfect elastic
slopes upwards
slopes of downwards
is perfectly inelastic
