Suppose That Unit Costs Are the Same at Both 100

question 127

Multiple Choice

Suppose that unit costs are the same at both 100 units of output and 150 units of output. Unit costs are higher at output levels less than 100 units and at output levels greater than 150 units. It follows that minimum efficient scale exists

• A)somewhere between 100 and 150 units.
• B)at 100 units.
• C)at 150 units.
• D)at less than 100 units.
• E)at greater than 150 units.

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Definitions:

Implied-In-Law Contracts

Implied-in-law contracts, also known as quasi-contracts, are contracts recognized by a court despite there being no agreement between the parties, to prevent unjust enrichment.

Unjust Enrichment

A legal principle that prohibits one person from being enriched at the expense of another in situations where the law demands restitution.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of their arrangement and obligates them to comply with those terms.

Promises

Commitments or assurances by one party to another that certain actions will or will not be undertaken.