The addition of gasoline pumps at a grocery store is a good example of a network externality

Refer to Figure 11-11. If the firm chooses to produce and sell 25,000 frames per month by operating in the short run with a scale operation represented by ATCc

A) the firm would lower its average costs by reducing its scale of operation. B) the firm will not be able to earn a profit. C) the firm will be operating efficiently. D) the firm will not be operating efficiently.

Which of the following observations is not true of a budget line?

a. It indicates what choices are available to the consumer. b. It is a curve of constant expenditure. c. Its slope reports the market terms on which the consumer can trade one good for another. d. It helps examine the consumer's preferences.