Use the Figure Below to Answer the Following Questions

question 44

Multiple Choice

use the figure below to answer the following questions

-This society could reach point F when there is a(n)

• A) increase in the monetary price of white rice.
• B) credible new study that shows eating pasta reduces the risk of heart attacks.
• C) new technology that makes the storage and transport of both rice and pasta more efficient.
• D) new tax on the sale of both rice and pasta.
• E) increase in the monetary price of macaroni.

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating excess over the opportunity cost.

Minimum Average Total Cost

The lowest point on the curve that shows the average cost of producing each unit of output when all input costs are considered over various output levels.

Marginal Cost

The cost added by producing one additional unit of a product or service.

Long-Run Equilibrium

A state in which all factors of production are variable, allowing firms to adjust their inputs in response to market conditions, resulting in no firm having an incentive to enter or exit the market.