Suppose a Firm Builds a Larger Plant and Increases Its

question 62

Multiple Choice

Suppose a firm builds a larger plant and increases its output.Which of the following statements is correct?

• A)Its MES output must increase.
• B)Its MES output will decrease.
• C)It will be able to achieve its MES output only if it also achieves economic capacity.
• D)Its short-run average cost curve for the original plant will have shifted down.
• E)Its long-run average costs must have increased.

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Definitions:

Passive Process

A process that occurs naturally without the need for energy input, such as diffusion or osmosis.

Diffusion

The process by which molecules move from an area of high concentration to an area of low concentration.

Concentration

The measure of the amount of a given substance in a specific volume of a solution, or the mental ability to focus on a single task without distraction.

Hypernatremia

A condition characterized by an abnormally high concentration of sodium in the blood.