Exhibit 8-11 -Refer to Exhibit 8-11, Which Is a Long-Run Average Total

question 50

Multiple Choice

Exhibit 8-11
-Refer to Exhibit 8-11, which is a long-run average total cost (ATC) schedule. The minimum efficient scale is at

• A)0 unit.
• B)1 unit.
• C)2 units.
• D)3 units.
• E)4 units.

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Definitions:

Deflation

A drop in the overall cost of goods and services, frequently resulting from a decrease in the availability of money or credit.

Inflation

The measurement of how swiftly the overall prices of goods and services increase, eroding the power to buy.

Intermediate Products

Goods that are used in the production process to make other goods, rather than being sold directly to consumers.

Final Products

Goods that are ready for consumption by the end user and will not undergo further manufacturing or processing.