Figure 10-3 ​

question 124

Multiple Choice

Figure 10-3
​
-A perfectly competitive firm should continue to expand output until

• A)total revenue exceeds total costs.
• B)total revenue exceeds variable costs.
• C)marginal revenue equals marginal costs.
• D)average revenue equals variable costs.

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between the two goods.

Efficient Production

A production process that operates at the lowest possible cost and produces the highest possible output with given resources and technology.

Production Possibility Frontier

A curve depicting the maximum feasible amounts of two goods that can be produced with available resources and technology.

Economic Growth

A growth in an economy's ability to produce goods and services when comparing one time period to another.