This quiz is a part of the CFA Level 1 reading 'Topics in Demand and Supply Analysis'. 

Demand and Supply

Economic profit: $0 million, Accounting profit: $1 million 

Economic profit: $1 million, Accounting profit: $0 million

Economic profit: $1 million, Accounting profit: $1 million

when marginal cost is decreasing, average total cost is increasing 

when marginal cost is at a minimum, so is average total cost 

First economies of scale, next constant returns to scale, then diseconomies of scale. 

First constant returns to scale, next economies of scale, then diseconomies of scale. 

First diseconomies of scale, then economies of scale, but no section of constant returns to scale. 

The point that fixed costs eventually increase as output expands.

The negative slope of the average total cost curve.

Demand and Supply Analysis: The Firm