If a Business Can Sell 20 000 Units of a Product

question 26

Multiple Choice

If a business can sell 20 000 units of a product at $2 per unit and 10 000 units at $4 per unit,its demand is:

• A)unit-elastic
• B)inelastic
• C)perfectly inelastic
• D)elastic
• E)perfectly elastic

Identify and interpret the implications of marginal cost changes on production levels.

Analyze the relationship between marginal cost, average total cost, and the production efficiency scale.

Understand the impact of fixed costs on average total cost and how it changes with production levels.

Comprehend the concept of the marginal product of labor and its significance in production decisions.

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Definitions:

Indigenous Production

The process of manufacturing goods within a particular region or territory using local resources and labor.

Service Economy

An economic phase in which the service sector generates more wealth than the manufacturing sector of the economy, characterized by a high volume of services relative to goods.