The Provided Graph Represents A(n)

question 179

Multiple Choice

The provided graph represents a(n)

• A)decreasing-cost industry: Firms may be paying lower prices for their inputs when the industry expands.
• B)increasing-cost industry: Firms may be paying higher prices for their inputs when the industry expands.
• C)competitive industry with diseconomies of scale: The short-run supply curves are upward sloping.
• D)constant-cost industry: Prices of the inputs stay the same, and other production costs are constant as the industry expands.

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Definitions:

Comparative Advantage

A theory in economics that suggests a country should specialize in producing and exporting goods in which it has a lower opportunity cost than its trading partners.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors when using the same amount of resources.

Skilled Human Resources

Individuals within the workforce who possess specialized training, knowledge, and experience in particular fields or disciplines.

Per Capita Incomes

The average income earned per person in a certain area in a specified year.