The Figure Below Shows the Long-Run Average Cost Curve for a Firm

question 86

Multiple Choice

The figure below shows the long-run average cost curve for a firm. Based on the figure, the region x shows _____.Figure 6-5

• A)the level of output at which the firm attains diseconomies of scale
• B)the level of output at which the firm attains economies of scale
• C)the level of output at which the firm attains minimum efficient scale​
• D)the level of output at which the firm attains economies of scale.
• E)the level of output at which the firm attains zero economic profit

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Definitions:

Option Contract

A contract which grants the holder the right to buy or sell an underlying asset at a predetermined price within a specified time frame.

Hedge Risk

A financial strategy used to limit or offset the probability of loss from fluctuations in the prices of currencies, commodities, or securities.

Speculate

The act of investing or trading in financial assets with high risk in anticipation of significant returns.

American Option

A type of options contract that allows holders to exercise the option at any time up to and including the expiration date.