Assess the Following as Probably , as Probably , as Requiring

question 58

Short Answer

Assess the following as probably , as probably , as requiring further documentation before judgment, or as a claim that cannot properly be evaluated. Consider both the nature of the claim and the source.
"Warning: St. John [in the Virgin Islands] is very much a 'cash only' island. Most restaurants and car rental agencies accept cash or travelers checks only."

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Definitions:

ATC Curve

Average Total Cost Curve, a graph that shows the cost per unit of output produced, plotted against the quantity of output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in a decrease in the per-unit cost as the output increases.

AVC

Average Variable Cost, which is the cost a company incurs to produce one additional unit of a product, excluding fixed costs.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, often used in economics to analyze production efficiency.