Figure 8-7 -Which of the Following Is True for Figure 8-7

question 41

Multiple Choice

Figure 8-7

-Which of the following is true for Figure 8-7?

• A)Firms in this industry begin to experience diminishing returns to their variable factors at output Q₁.
• B)Between Q₁ and Q₂,firms in this industry experience economies of scale.
• C)Firms producing output rates less than Q₁ or more than Q₂ will find it difficult to survive.
• D)The largest firms in this industry have the lowest per-unit cost.

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Definitions:

Observable Behaviors

Actions or reactions of individuals or systems that can be directly seen or measured.

Pragmatists

Thinkers or philosophers who judge the truth of theories or beliefs in terms of the success of their practical application.

Subconscious

The part of the mind that is not fully aware but influences actions and feelings.

Reality

The state or quality of having existence or substance; the world or state of things as they actually exist.