Decent Donuts -Use the Data in the Table Above and Suppose That

question 389

Multiple Choice

Decent Donuts

-Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve

• A) has a negative slope.
• B) has a positive slope.
• C) is at its minimum point.
• D) is at its maximum point.

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Definitions:

Bushels Supplied

A measurement reflecting the quantity of a commodity, like grain, provided for sale at a given time.

Market Equilibrium

A state in a market where supply equals demand, and neither buyers nor sellers have the incentive to change prices or quantities.

Demand Curves

Graphical representations showing the relationship between the price of a good or service and the quantity demanded for a given period.

Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.