Refer to the Long-Run Cost Diagram for a Firm

question 99

Multiple Choice

Refer to the long-run cost diagram for a firm. If the firm produces output Q ₂ at an average cost of ATC ₂, then the firm is

• A)producing the profit-maximizing output but is failing to minimize production costs.
• B)incurring X-inefficiency but is producing that output at which all existing economies of scale might be realized.
• C)incurring X-inefficiency and is failing to produce the output at which all economies of scale might be realized.
• D)producing that output with the most efficient combination of inputs and is realizing all existing economies of scale.

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Definitions:

Eliminating Privilege

The process aimed at removing unearned advantages or rights held by a specific group, often due to societal biases towards race, gender, or socio-economic status.

Tension And Competition

A state of rivalry and conflict between individuals, groups, or entities driven by opposing needs, desires, or objectives.

Manifest Function

In sociology, the intended and recognized consequences of a social process or institution.