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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. |
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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® 2025 Level I Curriculum, Volume 1, Module 1.