AC1 AC2 AC1 AC2 LRAC 01 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is,achieving MES. Ob. Building a larger plant would result in lower long-run average cost. Oc. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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IAN
GE
Student Resources - Faculty Resources - Academic Resources -
Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ.
AC1
AC2
AC1
AC2
LRAC
Q1
02
Output per time period
Refer to the graph above to answer this question. Which of the following statements is correct if a firm is
operating at point a on AC1?
Select one:
O a. The firm is achieving MES.
O b. Building a larger plant would result in lower long-run average cost.
O c. Building a larger plant would not result in lower long-run average cost.
od. The firm has achieved capacity output.
O e. An increase in the output would not lower costs.
Clear my choice
Staut o gao
Transcribed Image Text:IAN GE Student Resources - Faculty Resources - Academic Resources - Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ. AC1 AC2 AC1 AC2 LRAC Q1 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is achieving MES. O b. Building a larger plant would result in lower long-run average cost. O c. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs. Clear my choice Staut o gao
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