-Refer to the Graph Above to Answer This Question

question 55

Multiple Choice

-Refer to the graph above to answer this question.Could this firm produce an output of 200 at an average total cost of $20?

• A)Yes,and that output is economic capacity.
• B)Yes,but production would be inefficient.
• C)No,this combination would be unobtainable given present resource prices and the current state of technology.
• D)No,this combination is unobtainable because production would be inefficient.

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Definitions:

Aggregate Supply

The total supply of goods and services available to a particular market from producers at different price levels in a given period.

Aggregate Demand

The total requisition of goods and services in an economic setting, valued at a consistent price level and for a particular duration.

Full-Employment Equilibrium

A scenario where all accessible labor resources are utilized in the most economically effective manner.

Aggregate Supply (AS) Curve

A graphical representation in economics that shows the total supply of goods and services that firms in an economy are willing to produce at a given price level in a given period.