Use Exhibit 2. Which of the following statements is (are) correct? (x) Q2 is the efficient amount of output because the firm is producing at its lowest ATC. (y) P3 x Q2 is the firm's lowest total cost that it can achieve for any amount of output. (z) The amount of output produced increases as the firm moves from Q2 to Q3 and as a result average fixed cost decreases even though the amount of fixed cost stays constant.
Use Exhibit 2. Which of the following statements is (are) correct? (x) Q2 is the efficient amount of output because the firm is producing at its lowest ATC. (y) P3 x Q2 is the firm's lowest total cost that it can achieve for any amount of output. (z) The amount of output produced increases as the firm moves from Q2 to Q3 and as a result average fixed cost decreases even though the amount of fixed cost stays constant.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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