An Economist Observed That, as More Computers Are Added to a Factory

question 82

Multiple Choice

An economist observed that, as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

• A) negative both before and after the minimum point.
• B) negative and then positive after the minimum point.
• C) negative and then linear after the minimum point.
• D) positive and then negative after the minimum point.
• E) linear and then positive after the minimum point.

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Definitions:

Ideal Points

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An individual or enterprise responsible for creating and supplying goods or services to consumers or other businesses.

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A portion of the market categorized based on demographic factors, allowing for targeted marketing strategies.

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