What Is Meant by the Term Economic Capacity

question 5

Multiple Choice

What is meant by the term economic capacity?

• A)An output level where the firm is physically unable to increase output.
• B)The output level where average variable cost is at a minimum.
• C)The output level where average total cost is at a minimum.
• D)Total fixed costs are at a minimum.

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Definitions:

Simple Interest

Interest assessed only on the base amount, or on whatever portion of the base amount has not been settled.

Interest

Payment made for the use of borrowed money, calculated as a percentage of the principal sum.

Simple Interest

Interest calculated only on the initial amount of money (principal), not on the interest accrued over time.

Investment

Allocation of resources, such as time, money, or effort, in hope of generating a future benefit or return.