Table 20-3 The Distribution of Income in Edgerton

question 110

Multiple Choice

Table 20-3
The Distribution of Income in Edgerton
-Refer to Table 20-3. Where would the government in Edgerton set the poverty line to have a poverty rate of 40 percent?

• A)$28,000
• B)$44,000
• C)$76,000
• D)$88,000

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Definitions:

Decreasing-Cost Industry

An industry in which costs per unit decline as the industry scales up production, often due to economies of scale.

Average Cost

The total cost of production divided by the quantity of the product produced, indicating the cost per unit of output.

Industry's Output

The total production of goods or services generated by all firms operating within a specific industry.

Decreasing-Cost Industry

An industry characterized by a downward-sloping long-run supply curve, indicating lowering costs as industry output increases.