The Figure Below Shows a Family of Cost Curves for a Firm.The

question 119

Multiple Choice

The figure below shows a family of cost curves for a firm.The subscripts 1,2,and 3 for the SRATC curves refer to different plant sizes.
FIGURE 8- 3
-Refer to Figure 8- 3.Should this profit- maximizing firm ever consider moving from point E (output level Q3 on SRATC2) to point F (output level Q5 on SRATC3) ?

• A)Yes,because the firm can take advantage of economies of scale.
• B)No,because they are already producing at their lowest possible cost at point E.
• C)Yes,because SRATC3 is the optimal plant size for this firm.
• D)Yes,if the product price rises enough to lead the firm to expand to plant size 3.
• E)No,because producing at point F implies a higher cost per unit of output.

---

Definitions:

Unauthorized Use

Utilizing property, information, or resources without permission or legal right.

Computer Programs

Sequences of instructions written to perform a specified task with a computer.

Criminal Code

A legal document that codifies most criminal offences and procedures in a country or specific area.

Copyright Law

Legal protection granted to original works of authorship, including literary, musical, and artistic works, from unauthorized use or reproduction.