Which Statement Is Correct for the Bent Solid Line Given

question 70

Multiple Choice

Which statement is correct for the bent solid line given below?

• A) It describes a continuous distribution because the bent line is continuous.
• B) It does not describe a continuous distribution because the area beneath the bent line is not 1.
• C) It describes a continuous distribution because the area beneath the bent line is 1.
• D) None of the above.

---

Definitions:

Diminishing Returns

A principle stating that as one input in the production process is incrementally increased, there will be a point at which the added output from each additional unit of input will start to decrease.

Diseconomies of Scale

This phenomenon occurs when a firm's production costs per unit increase as it produces more, due to inefficiencies that arise from scaling up operations.

Economic Profit

The economic result derived from subtracting a business's entire expenses, both explicit and implicit, from its total incoming funds.

Product Price

The amount of money required to purchase a good or service, determined by factors like production cost, market demand, and competition.