Refer to Figure 8

question 37

Multiple Choice

Refer to Figure 8.6,which shows just three of a firm's various possible short-run average cost curves.Suppose the firm increases its output from 130 units to 160 units.Which of the following statements is true?

• A) The average cost of producing the 160 units would be $90 if the firm expected the increase in production to be permanent.
• B) The average cost of producing the 160 units would be $80 if the firm expected the increase in production to be permanent.
• C) The average cost of producing the 160 units would be $175 if the firm expected the increase in production to be temporary.
• D) The average cost of producing the 160 units would be $80 if the firm expected the increase in production to be temporary.

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Definitions:

Expand

In mathematics, to expand an expression means to simplify it by distributing and combining like terms.

Properties

Characteristics or attributes that help define mathematical operations or objects.

Logarithms

The power to which a base, usually 10 or e, needs to be elevated to result in a specific number.

Condense

To condense means to make something denser or more concentrated by reducing its volume or content without losing essential elements.