FIGURE 4-2 -Refer to Figure 4-2.There Is Good Reason to Suppose That,of

question 148

Multiple Choice

FIGURE 4-2
-Refer to Figure 4-2.There is good reason to suppose that,of the four goods whose demand curves are shown in diagrams 1-4 of the figure,the good that has the fewest close substitutes is shown in

• A)diagram 1.
• B)diagram 2.
• C)diagram 3.
• D)diagram 4.
• E)There is not enough information to determine this.

---

Definitions:

Peak Efficiency

The state of operating at the maximum possible efficiency, where resources are used most effectively and wastage is minimized.

Profits

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Total Profit

Total profit is the financial gain a business achieves after subtracting total costs from total revenue.

AVC

Average Variable Cost, which is the cost a company incurs to produce each additional unit of product, excluding fixed costs.