Why Are There Discontinuities (Areas Where the Curve Jumps Up

question 51

Essay

Why are there discontinuities (areas where the curve jumps up or down and is not smooth) in the total cost curve in the quantity discount model?

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Definitions:

Corporate Stock

Equity instruments that signify an ownership position in a corporation, entitling the holder to a portion of the company's assets and profits.

Economists

Scholars or professionals who study, develop, and apply theories and concepts from economics, and write about economic policy.

Capacity Utilization Rate

A measure of how well a company or economy is using its productive capacity, expressed as a percentage of total potential output that is actually being realized.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced.