If a Given Production Combination Is Known to Be Attainable

question 35

Multiple Choice

If a given production combination is known to be attainable, then it must be:

• A) on the production possibilities curve.
• B) an inefficient point.
• C) an efficient point.
• D) either an inefficient or efficient point.

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Definitions:

Barriers to Entry

Barriers that make it difficult for new entrants to join a market or business sector.

Average Total Cost Curve

Depicts the per-unit total cost of production (fixed cost plus variable cost) divided by the quantity of output produced.

Natural Monopoly

A market condition in which a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.

Patent Laws

Legal statutes that grant inventors exclusive rights to their inventions, preventing others from making, using, or selling the invention for a certain period of time.