Use the Following to Answer Questions

question 35

Multiple Choice

Use the following to answer questions
Figure: Class Rank
-(Figure: Class Rank) From this graph, one knows with certainty that a person with a class rank of 60 in the freshman year would have a class rank of 60 in his or her senior year.This statement is an example of a(n) _____ lie.

• A) extrapolation
• B) sneaky sample
• C) interpolation
• D) inaccurate values

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Definitions:

Diseconomies of Scale

The phenomenon where an increase in production leads to higher costs per unit due to inefficiencies that arise from scaling up operations.

Increasing Returns

An increase in a firm’s output by a larger percentage than the percentage increase in its inputs.

Diminishing Returns

A principle stating that after a certain point, additional investment or effort yields progressively smaller increases in output.

Marginal-cost Curve

The marginal-cost curve represents how the cost of producing one additional unit of a good changes as its production volume varies.