The Shape of the Total Cost Curve Between the Output

question 147

Multiple Choice

The shape of the total cost curve between the output levels represented by points a and b in the following figure reflects _____. ​
Figure 8.1:
​

• A)fixed costs
• B)increasing profits
• C)diminishing marginal returns
• D)increasing marginal returns
• E)economies of scale

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Definitions:

Optimal Solution

The best possible solution or outcome that meets all constraints and maximizes or minimizes the objective function in a given mathematical model or problem.

Origins

The starting point, cause, or source of something.

Destinations

The end points or targets to which something is directed or sent.

Routes

Paths or courses determined for the transportation of goods or people from one location to another.