Figure 5-4 -Refer to Figure 5-4.The Section of the Demand Curve from Demand

question 52

Multiple Choice

Figure 5-4
-Refer to Figure 5-4.The section of the demand curve from B to C represents the

• A)elastic section of the demand curve.
• B)perfectly elastic section of the demand curve.
• C)unit elastic section of the demand curve.
• D)inelastic section of the demand curve.

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Definitions:

Economies of Scale

Cost advantages that entities attain due to the scale of operation, with costs per unit of output generally decreasing with increasing scale.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the performance exceeding opportunity costs.

Short-Run Equilibrium

The condition in which supply and demand are equal at a particular price level, within a short time frame, before all variables have fully adjusted.