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Ivan
3 years ago
15

Complete the following sentence. When the long run average cost (LRAC) curve has a positive slope, it implies there are:

Business
1 answer:
Andreas93 [3]3 years ago
4 0

Answer:

It implies there are diseconomies of scale.

Explanation:

It implies there are diseconomies of scale in the industry

Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.

When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.

While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.

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Answer: Controlling

Explanation:

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5 0
3 years ago
The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8 and the beta of B is 1.5.
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Answer:

Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

Explanation:

Expected return= free return + Beta (Expected rate of return – risk free rate)

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Portfolio B

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It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

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