Figure 13-9 the Figure Below Depicts Average Total Cost Functions for a for a Firm

question 279

Multiple Choice

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 13-9. At levels of output less than M, the firm experiences

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)both diminishing marginal productivity and coordination problems.

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Definitions:

Lanugo

Fine, soft, unpigmented fetal hair.

Colostrum

Thin, white fluid; the first milk secreted by the breast at the termination of pregnancy; contains less fat and lactose than the milk secreted later.

Fetal Hair

Also known as lanugo, it is the fine, soft hair that covers the body of a fetus as a form of insulation.

Primary Hair

The main or guard hairs that form the outer coat of an animal's fur, providing protection against the elements.