Figure 7-11
Figure 7-11 shows an average cost curve with points on it that correspond to three quantity levels. Which of the following statements must be wrong?
a.
The firm's technology may show increasing marginal returns as production increases from A to B.
b.
The firm may have positive fixed costs.
c.
As production expands from A to B to C, the firm may become increasingly difficult to manage efficiently.
d.
The firm's average fixed cost may rise as production increases from B to C.
d
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The above table has data from the nation of Atlantica. Based on these data, at what point does saving equal zero?
A) None, dissavings is present at all of the above points. B) Between disposable income of $0.0 and $1.8 trillion C) Between disposable income of $4.0 trillion and $5.8 trillion D) Between disposable income of $2.0 trillion and $3.2 trillion E) None, savings is present at all of the above points.
Diminishing marginal returns and diseconomies of scale are two different names for the same thing
Indicate whether the statement is true or false