If a Competitive Firm Is Producing to the Left of the Minimum

question 63

Multiple Choice

If a competitive firm is producing to the left of the minimum point of its long- run average cost curve, then

• A) it can reduce its unit costs by building a larger plant.
• B) its profits will decrease if it builds a larger plant.
• C) it should shut down.
• D) it cannot be producing its present output efficiently.
• E) it can still be in long- run equilibrium as long as P = SRATC.

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Definitions:

Embolus

A blood clot, air bubble, piece of fatty deposit, or other foreign body that has been carried in the bloodstream to lodge in a vessel and cause an embolism.

Immunoglobulins

Proteins in the blood plasma functioning as antibodies that play a crucial role in the immune response.

Antinuclear Antibodies

are autoantibodies that target substances within the nucleus of cells, indicative of autoimmune diseases.

Sedimentation Rate

A blood test that measures how quickly red blood cells settle at the bottom of a test tube, indicating the presence of inflammation in the body.