Use the Figure to Answer the Following Question(s)

question 101

Multiple Choice

Use the figure to answer the following question(s) .
Figure 8-9
-In Figure 8-9, which output would minimize the firm's average total cost of production?

• A) 30
• B) 40
• C) 50
• D) 60

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Definitions:

Economic Inefficiency

A situation where resources are not allocated optimally, leading to waste or an outcome where potential gains are not fully realized.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully employed.

Market Prices

The amounts at which goods and services can be bought or sold in open markets.

Resource Substitutability

The degree to which different inputs (or resources) can be substituted for one another in the production process.