Refer to the Graph Shown

question 150

Multiple Choice

Refer to the graph shown. Given the long-run average cost curve, the minimum efficient scale of production is:

• A)16.
• B)18 to 21.
• C)21.
• D)23.

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Definitions:

Decreases

A reduction or decline in value, amount, or level.

Constant Dollar

A term used to describe a dollar value that has been adjusted for inflation to reflect purchasing power at a specific point in time.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in real terms.

Intermediate Goods

Products that are used as inputs in the production of other goods or services, not sold directly to end consumers.