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Basic Question 5 of 13
Refer to the graph below. Within which part of the production function is the firm most likely to operate?
User Contributed Comments 3
| User | Comment |
|---|---|
| Oksanata | seems like at A Diminishing marginal returns begin meaning MP is at maximum at A, so why B if MP is declining at this area? |
| gill15 | Think the answer is correct but the solution is wrong. The output is increasing but NOT at an increasing rate for B. |
| abdelaziz | Oksanata: it is B because even though it is decreasing in that area, MP is still positive. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.