-Refer to the Graph Above

question 52

Multiple Choice

-Refer to the graph above.Which of the following statements is true?

• A) The firm maximizes profit at 3.5 units of output.
• B) The firm maximizes profit at 3 units of output.
• C) The firm maximizes profit at 1.5 units of output.
• D) The law of diminishing returns occurs between 2.5 to 3.5 units of output.
• E) The law of diminishing returns begins to occur after 1.5 units of output.

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Definitions:

Time Certain

A specific, agreed-upon moment or period in which something is to occur or be completed, often used in contracts and scheduling.

Assumed Name

An assumed name, also known as a trade name or "doing business as" (DBA), is a name a business uses that is different from its legal, registered name.

Device

A piece of equipment designed for a particular purpose, often electronic in nature.

Demand Instrument

A financial document that requires the payment of money immediately or on demand.