P

Praveen Singh • 35.28K Points
Coach 

Q. A firm may decide to increase its scale so that it has excess production capacity because, by doing so, it is able to

(A) minimize its average cost of production
(B) establish a credible deterrent to the entry of competing firms
(C) take advantage of a dominant strategy in a prisoners’ dilemma
(D) attain a nash equilibrium and avoid repeated games

Correct Answer - Option(B)

Share

Discusssion

Login to discuss.

Be the first to start discuss.

Related Posts

Q. An oligopolist may engage in short-run behaviour that results in lower profits if

Q. Diminishing marginal returns implies:

Q. The marginal product curve is above the average product curve when the average product is :

Q. A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 40 units and Y is 16 units. The unit price of X is Rs.5. The price of Y is:

Q. Which would be an implicit cost for a firm? The cost:

Q. If there is excess capacity in a production facility, it is likely that the firm’s supply curve is:

Q. In oligopoly:

Q. The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of:

Q. A firm may decide to increase its scale so that it has excess production capacity because, by doing so, it is able to

Q. Implicit costs are:

View All Posts