In the Above Graph,as You Move from Point B to Point

question 44

Multiple Choice

In the above graph,as you move from point B to point C,

• A)output is unchanged.
• B)cost is unchanged.
• C)the amount of capital increases and the amount of labor decreases.
• D)both b and c
• E)all of the above

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Definitions:

Cheating

Dishonest behavior or attempting to gain an unfair advantage in a competitive situation.

Marginal Cost

The advancement in overall fees incurred by producing an extra unit of a good or service.

Market Demand Curve

A graphical representation that shows the quantity of goods that consumers in a market are willing to buy at different prices.

Herfindahl-Hirschman Index (HHI)

A measure of market concentration that is calculated by squaring the market share of each firm competing in a market and then summing the squares.