The Significance of the Minimum Point on the Average Variable

question 13

Multiple Choice

The significance of the minimum point on the average variable cost curve is that _____

• A)it is the profit-maximizing level of output.
• B)it is the selling price of a good.
• C)it is the point of indifference between producing at a loss and shutting down.
• D)if the firm produces one more unit, its average variable cost will be less than its marginal cost.
• E)it shows the amount of total cost incurred by a firm in the production process.

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Definitions:

Species Loss

The disappearance of species from a habitat or the world, significantly impacting biodiversity and ecosystem functions.

Economically Sustainable

Practices or methods that ensure resources are used in a way that meets current needs without compromising the ability of future generations to meet their needs, ensuring long-term economic stability.

Economic Growth

An increase in the production and consumption of goods and services, indicating the improving economic health of a region or nation over time.

Tragedy of the Commons

A situation in economic theory where individual users consuming shared resources act according to their own self-interest contrary to the common good of all users, leading to resource depletion.