Q select two of the following topics to discuss within the

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Reference no: EM13353442

Q. Select two of the following topics to discuss within the discussion thread:

1. Converse how average cost narrates to the concept of 'economies of scale.'

2. Converse why the average cost curve is U-shaped in the long-run also references the Better Steel Corporation as an example.

3. If for a scrupulous firm, the average cost of producing the product reaches a minimum at such an production level that it is large enough to satisfy the product demand of the entire market as well as this firm is experiencing economies of scale, what does it have an obvious incentive to do as well as why?

4. If there are several such firms in bazaar, is economic warfare likely to result as well as why?

5. What is main likely outcome of such economic rivalry?

6. In such cases where economies of scale lead to a monopolistic market structure are measured examples of "natural monopolies." Clarify how such a monopoly is considered 'defensible?'

7. Discuss reasons the public might have for insisting that the government regulate natural monopolies.

8. The electric power industry is held up in the article as an example of a natural monopoly. Brainstorm other examples that can be readily identified in the present market economy.

Reference no: EM13353442

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