This Graph Shows the Cost Curves for Moe's Mushroom Gathering

question 68

Multiple Choice

This graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. The curve labeled A is upward sloping because:

• A)of high fixed costs.
• B)of diminishing returns to Moe's variable factors of production.
• C)an increase in the demand for mushrooms increases the supply of mushrooms.
• D)variable costs increase as output increases.

---

Definitions:

Fibroblasts

Cells in connective tissue that produce collagen and other fibers.

Collagen

The primary structural protein in the extracellular space in the various connective tissues of the body.

Capillaries

Tiny blood vessels between arteries and veins where oxygen, nutrients, and wastes are exchanged between blood and tissues.

Basal Lamina

A thin, fibrous layer of extracellular matrix that underlies the epithelium and separates it from underlying connective tissue.