In Figure 4.2, the reason that the increase in output from point B to C is much greater than the increase in output from point C to D is that 
A. there is waste.
B. small levels of production are often inefficient and that significant increases in production can occur thereafter at only a small additional cost.
C. it is very difficult and very expensive to increase output once the capacity of the machinery has been reached.
D. it always costs more money to increase output.
Answer: C
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What is the relationship between start-up costs and a competitive market?
(A) There is no consistent relationship between start-up costs and the competitiveness of a market. (B) Low start-up costs are likely to make a market less competitive. (C) Markets with high start-up costs are more likely to be perfectly competitive. (D) Markets with high start-up costs are less likely to be perfectly competitive.
A job leaver is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.