Exhibit 7-11 Movement from Point a to Point B

question 94

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:

Thomas Jefferson

An American Founding Father, the principal author of the Declaration of Independence, and the third President of the United States, serving from 1801 to 1809.

John Jay

An American statesman, Patriot, diplomat, Founding Father, signatory of the Treaty of Paris, and first Chief Justice of the United States.

Constitutional Convention

A formal meeting called for the purpose of creating or revising a constitution.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services.