Use the Figure Below to Answer the Following Questions

question 118

Multiple Choice

Use the figure below to answer the following questions.
Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point C, the opportunity cost of producing one more unit of X is

• A)8 units of X.
• B)20 units of X.
• C)20 units of Y.
• D)1 unit of X.
• E)1 unit of Y.

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Definitions:

Long-Run Average Cost Curve

A graphical representation showing how the average cost of production changes as the scale of production is altered over the long term, reflecting economies and diseconomies of scale.

Minimum Cost

The lowest possible cost at which a particular quantity of goods or services can be produced or obtained, while still maintaining efficiency and effectiveness.

Increasing Return to Scale

When an increase in the amount of inputs results in a disproportionate increase in the output produced.

Increasing Return to Scale

A situation in which output increases by a larger proportion than the increase in inputs in the production process.