-Which of the Following Statements Would Be True About a Firm

question 159

Multiple Choice

-Which of the following statements would be true about a firm which has excess capacity?

• A)Its average total cost would be at a minimum.
• B)Its average total cost would not be at a minimum.
• C)Its average total cost may or may not be at a minimum but the firm would not be at economic capacity.
• D)It would not be at capacity output,but its average total cost would be at a minimum.
• E)It would need to reduce output to achieve minimum average total cost.

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Definitions:

Methodology

The system of methods and principles used in a particular discipline or field of study to gather and analyze data.

Evolutionary Psychology

A branch of psychology that studies how evolutionary principles help explain the structure and function of the human mind.

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The outer layer of the brain that is responsible for complex cognitive processes, including thought, memory, awareness, and consciousness.

Biological Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.