Which of the Following Is Best Categorized as an Example

question 1

Multiple Choice

Which of the following is best categorized as an example of a natural service?

• A)renewable energy
• B)nonrenewable energy
• C)water purification
• D)oil
• E)soil

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Definitions:

Efficient Scale

The level of production that minimizes the average total cost of production, optimizing resource usage.

Competitive Firm

A company that operates in a market where prices are determined through competition amongst businesses.

Firm's Profit

The financial gain a company achieves when its total revenues exceed the total costs incurred in conducting its business activities.

Efficient Scale

The level of production at which the average total costs of production are minimized.