-In the Above Figure, Equilibrium Expenditure Is

question 349

Multiple Choice

-In the above figure, equilibrium expenditure is

• A) $12 trillion.
• B) less than $12 trillion.
• C) more than $12 trillion.
• D) some amount that cannot be determined without more information.

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Definitions:

Expenditures

Money spent on goods, services, or other expenses.

Scale Economies Index

A measurement that assesses the advantages a business gains due to the scale of its operation, typically resulting in reduced costs per unit as production increases.

Cost-Output Elasticity

The responsiveness of the cost of producing a good or service to changes in the level of output.

Diseconomies of Scale

A situation where a business grows so large that the costs per unit increase. It occurs when economies of scale no longer function for a firm.