Refer to the Graph Shown of Average Costs for a Typical

question 97

Multiple Choice

Refer to the graph shown of average costs for a typical firm. The lowest per-unit costs for the industry could be achieved if:

• A) one firm produced 333 units of output.
• B) two firms each produced 500 units of output.
• C) one firm produced 1,000 units of output.
• D) three firms each produced 333 units of output.

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Definitions:

Terminus

The lower end of a glacier.

Evaporation

The process by which water transforms from a liquid to a gas or vapor, often driven by heat from the sun.

Seawater

The saltwater that makes up the oceans and seas, covering more than 70% of the Earth's surface.

Sediment

Particles of organic or inorganic matter that settle out of suspension in water, air, or ice, and accumulate in layers on the earth's surface.