Answer the Question Using the Graphical Display

question 10

Multiple Choice

Answer the question using the graphical display.
-Identify the utility that decreases as a percentage of the total utility bill from January to June.

• A)Natural gas
• B)Water
• C)Electric
• D)None decrease from January to June.

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Definitions:

Diseconomies of Scale

This phenomenon occurs when a firm's production costs per unit increase as it produces more, due to inefficiencies that arise from scaling up operations.

Economic Profit

The economic result derived from subtracting a business's entire expenses, both explicit and implicit, from its total incoming funds.

Product Price

The amount of money required to purchase a good or service, determined by factors like production cost, market demand, and competition.

Optimal Output

The level of production at which a company can achieve the highest possible profit, balancing costs and revenues effectively.