Use the Figure Below to Answer the Following Questions

question 39

Multiple Choice

Use the figure below to answer the following questions.

Figure 19.1.3
-In Figure 19.1.3,the second richest 20 percent of all families receive what share of income?

• A)10 percent
• B)20 percent
• C)30 percent
• D)40 percent
• E)none of the above

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Definitions:

Average Total Cost

A firm’s total cost divided by output (the quantity of product produced); equal to average fixed cost plus average variable cost.

Economies of Scale

Cost advantages that a business obtains due to expansion, leading to a reduction in the average cost per unit through increased production.

Diseconomies of Scale

The situation in which a business grows to a point where the costs per unit increase, opposed to saving costs, often due to managerial inefficiencies or complexity.

Constant Returns to Scale

A situation in which increasing the amount of all inputs used in production by a certain factor results in output increasing by the same factor.