Figure 11-12 -Refer to Figure 11-12.Which of the Following Statements About the Following

question 101

Multiple Choice

Figure 11-12

-Refer to Figure 11-12.Which of the following statements about the input combinations shown in the diagram is false?

• A)The firm produces a higher output level when it uses input combination b compared to input combination a.
• B)The firm produces a lower output level when it uses input combination d compared to input combination a.
• C)The firm produces the same output level when it uses input combination a or c.
• D)The firm incurs the same total cost when it uses input combination a or c to produce a given quantity of output.

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Definitions:

Government

The organization or system through which a community, state, or nation is governed and regulatory policies are implemented.

Subsidizes

Financial aid supplied by the government to an industry or business so that the price of a commodity or service may remain low or competitive.

Steel

A hard, strong alloy made primarily of iron and carbon, used extensively in construction and manufacturing.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.