Exhibit 7-11 -Movement from Point a to Point B in Exhibit 7-11

question 107

Multiple Choice

Exhibit 7-11
-Movement from point a to point b in Exhibit 7-11 indicates that the firm is experiencing

• A) economies of scale
• B) increasing average cost
• C) economies of cost
• D) a decrease in average plant size
• E) diseconomies of scale

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Definitions:

Genes

The segments on a DNA molecule that act as hereditary blueprints for the organism’s development.

Umbilical Cord

A flexible helical structure containing blood vessels that connects the developing organism to the placenta.

Placenta

An organ made up of tissue from both the mother and the fetus that serves as a barrier and filter between their bloodstreams.

Mesoderm

Cells of the inner cell mass of the embryo that give rise to the muscles, the bones, the circulatory system, and the inner layers of the skin.