-In the Above Figure, a Trough Is at Point_________ and a Peak

question 280

Multiple Choice

-In the above figure, a trough is at point_________ and a peak is at point _________.

• A) a; b
• B) d; c
• C) b; c
• D) b; a

---

Definitions:

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while others remain constant, the overall returns will gradually decrease after a certain point.

Long-Run Average Cost Curves

A graphical representation showing the average cost per unit of output over a long period, where all inputs, including capital, are variable.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in average costs per unit as output increases.

Diseconomies of Scale

The situation in which a business grows so large that the costs per unit increase, as opposed to economies of scale where costs per unit decrease with the increase in output.