(Figure: Determining Production Strategies) Based on the Graph, What Is

question 249

Multiple Choice

(Figure: Determining Production Strategies) Based on the graph, what is the appropriate course of action for the firm's owner?

• A) He should continue operations in the short run and leave the industry in the long run.
• B) He should shut down immediately because the firm is incurring a loss.
• C) He should continue operations but lay off some workers to avoid paying fixed costs.
• D) He should expand production to make up losses by selling more.