Figure 711 Figure 7

question 129

Multiple Choice

Figure 7.11 Figure 7.11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATC_a, ATC_b and ATC_c.
-Refer to Figure 7.11.Constant returns to scale

• A)occur for output rates greater than 5000 picture frames.
• B)occur between 5000 and 20 000 picture frames per month.
• C)occur between 10 000 and 20 000 pictures frames per month.
• D)will shift the long-run average cost curve downward.

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Definitions:

Performance

The execution, accomplishment, or fulfillment of a promise, contract, or other obligation.

Revocation

The act of withdrawing, canceling, or repealing a statement, offer, or privilege, which can pertain to legal contracts, licenses, or wills.

Acceptance

In contract law, the agreement by a party to the terms of an offer, forming a contract.

Capacity

In legal terms, the ability to understand the nature and effects of one's actions, specifically in forming contracts or executing wills.