Knowledge Increases ____________ and Specialization __________ Total Output

question 113

Multiple Choice

Knowledge increases ____________ and specialization __________ total output.

• A) education; decreases
• B) productivity; increases
• C) perception; increases
• D) economies of scale; decreases

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit costs and opportunity costs.

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single seller can influence the market price.

Market Price

The present cost for purchasing or selling an asset or service within a specific market.

Minimum-Cost Output

The level of production at which a firm can produce goods at the lowest possible average total cost.