A production point is economically efficient as long as it lies within the production possibilities set.
Indicate whether the statement is true or false
Question 2
If an average cost curve is U-shaped, then:
a. costs per unit remainconstant throughout the entire range of production.
b. costs per unit fall throughout the entire range of production.
c. costs per unit increase throughout the entire range of production.
d. costs per unit first rise, then reach a maximum, and then begin to fall as output is increased.
e. costs per unit first fall, then reach a minimum, and then increase as output is increased.
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