Figure 11-13 -Refer to Figure 11-13.If the Diagram Represents a Typical Firm

question 94

Multiple Choice

Figure 11-13

-Refer to Figure 11-13.If the diagram represents a typical firm in the market,what is likely to happen to its average cost of production in the long run?

• A) It will probably fall since the firm must be cost efficient to remain competitive.
• B) It will probably fall since the firm will be selling less than its current amount.
• C) It will probably rise since the firm will be producing less than its current amount.
• D) It will probably rise since its long-run demand is likely to be higher.

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Definitions:

Ronald Reagan

The 40th President of the United States (1981-1989) known for his economic policies known as "Reaganomics," the end of the Cold War, and conservative political ideology.

Herbert Hoover

The 31st President of the United States (1929-1933), whose term was notably marked by the onset of the Great Depression.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment, deflation, and a significant fall in economic activity.

Economic Expansion

A phase of the business cycle where the economy grows and increases its output, leading to higher employment and income levels.