Choosing to Trade ________ Specialization,________ Opportunity Costs

question 31

Multiple Choice

Choosing to trade ________ specialization,________ opportunity costs.

• A) reduces; reducing
• B) reduces; increasing
• C) increases; decreasing
• D) increases; increasing
• E) increases; but doesn't change

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Definitions:

ATC

Stands for Average Total Cost, which is the sum of all costs (fixed and variable) divided by the quantity of output produced.

Economic Profit

The surplus remaining when total revenue is greater than total cost, including both explicit and implicit costs, often indicating a company's profitability.

Purely Competitive Seller

A seller in a market characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information.

Total Cost

The sum of all costs incurred by a business in producing a given level of output, including both fixed and variable costs.