When an Entrepreneur Produces Only a Few Units of Output

question 13

Multiple Choice

When an entrepreneur produces only a few units of output, much of the cost of each unit must be used to pay fixed costs and, therefore, average cost is

• A) high
• B) low
• C) zero

---

Definitions:

Specific Amount

A precise quantity defined or required in a given context, not subject to variation.

Time

A continuous, irreversible sequence in which events occur from the past through the present to the future.

Compression Ratio

The ratio of the volume of its combustion chamber from its largest capacity to its smallest capacity, used in internal combustion engines.

Cylinder

A chamber within an engine where a piston moves to compress fuel and air, creating the combustion needed for power.