Exhibit 7-9 -If the Firm Represented in Exhibit 7-9 Wants to Produce

question 23

Multiple Choice

Exhibit 7-9
-If the firm represented in Exhibit 7-9 wants to produce output level q, then in the long run it should build a plant size with average total cost curve of

• A) 1
• B) 2
• C) 3
• D) 4
• E) the question cannot be answered with the information given

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Definitions:

Output

Output refers to the goods or services produced by a business, system, or process within a given period.

Role Conflict

A situation in which there are contradictory expectations associated with a single role or multiple roles being performed by an individual.

Divergent Role Expectations

The phenomena where there are conflicting or differing expectations from a single role held by an individual.

Situation

The set of circumstances or the state of affairs at a particular time or in a particular context.