-Refer to the Graph Above to Answer This Question

question 71

Multiple Choice

-Refer to the graph above to answer this question.All of the following statements except one is correct.Which is the exception?

• A)The LRAC curve illustrates both the advantages of the division of labour and the law of diminishing returns.
• B)Economies,diseconomies and constant returns to scale are illustrated in the LRAC curve.
• C)Given the LRAC curve illustrated,a firm could be too small or too large.
• D)Diseconomies of scale exist at output levels above Q₂.

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Definitions:

Annual Coupon Payments

The fixed interest payments made by a bond issuer to the bondholders at regular intervals over the life of the bond.

Positive Slope

In graph terms, a positive slope indicates that as one variable increases, the other variable also increases, demonstrating a direct relationship.

Economy

The system of production, distribution, and consumption of goods and services within a particular region or country.

Coupon Rate

A bond's annually paid interest rate, denoted as a percentage of its face value.