Use the Following Graph to Answer the Following Questions

question 13

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 LRATC1.It might look this way because the firm

• A) adds several additional layers of management,which increase its costs.
• B) is able to pay its employees more.
• C) has to pay higher rent.
• D) is able to negotiate lower prices with its suppliers.
• E) is able to sell more output.

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Definitions:

Human Progress

Human progress refers to the advancement of human societies in terms of technology, science, social organization, and overall quality of life throughout history.

Government Interference

The involvement or intervention of government in personal, business, or other affairs where it might not be wanted or considered beneficial.

Semiskilled Industrial Workers

Workers possessing a limited set of specific skills or minimal training, often employed in industrial settings.

Working Conditions

The environment, including physical and psychological aspects, in which employees operate.