Question

Which of the following prevents a monopolist from charging any price it would like to charge for a particular good?

	A.	Consumer power
	B.	Economies of scale
	C.	Low labor costs
	D.	Price discrimination

Economies of scale are features of a firm’s technology that:

	A.	makes average total cost fall as output increases.
	B.	makes average total cost fall as output decreases.
	C.	makes average total cost rise as output decreases.
	D.	makes average total cost rise as output increases.

Answer 1

B.

Economiesion of scale Option B. Economies of scale Economies of scale allude to diminished expenses per unit that emerge from expanded all out yield of an item. For instance, a bigger manufacturing plant will create control hand apparatuses at a lower unit cost and a bigger therapeutic framework will lessen cost per medicinal method. Option A.Economies of scale are features of a firm's technology that make average total cost FALL as output increases At the point when economies of scale are available, the LRAC bend slants descending.