Which of the following is not a limitation of the survivor technique for measuring the optimum size of firms within an industry?
A) since the technique does not employ actual cost data in the analysis,there is no way to assess the magnitude of the cost differentials between firms of varying size and efficiency.
B) the managerial and entrepreneurial aspects of the production process are not included in the analysis
C) because of legal factors,the long-run cost curve derived by this technique may be distorted and may not measure the cost curve postulated in economic theory
D) a and b
E) b and c

Question

Quizplus · Accepted Answer

The Answer of Which of the following is not a limitation of the survivor technique for measuring the optimum size of firms within an industry?
A) since the technique does not employ actual cost data in the analysis,there is no way to assess the magnitude of the cost differentials between firms of varying size and efficiency.
B) the managerial and entrepreneurial aspects of the production process are not included in the analysis
C) because of legal factors,the long-run cost curve derived by this technique may be distorted and may not measure the cost curve postulated in economic theory
D) a and b
E) b and c

Which of the Following Is Not a Limitation of the Survivor