Use the Following Graph to Answer the Following Questions

question 132

Multiple Choice

Use the following graph to answer the following questions.

-A firm expands its scale of production and finds that its long-run average total cost curve looks like LRATC3.It might look this way because the firm

• A) is able to pay its employees less.
• B) adds several additional layers of management,which increase its costs.
• C) is able to reduce its tax burden.
• D) is able to produce output more efficiently.
• E) is able to sell more output.

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Definitions:

Forest

A large area covered predominantly with trees and undergrowth.

Ecology

The branch of biology that studies the interactions among organisms and their environments, encompassing both biotic and abiotic components.

Trophic Level

The position an organism occupies in a food chain, categorized by the number of energy transfer steps from primary producers to top predators.

Habitat

Place where an organism lives and is able to survive and reproduce.