The Figure Given Below Shows Three Short Run Average Total

question 69

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Refer to the Figure 8.3. In the long run, an increase in production from Q₁ to Q₃ would:

• A)increase average cost by C₄ - C₁.
• B)increase average cost by C₃ - C₁.
• C)increase average cost by C₃ - C₂.
• D)decrease average cost by C₃ - C₁.
• E)decrease average cost by C₃ - C₂.

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Definitions:

Deviant

Behaving or thought patterns that differ significantly from the norm or societal expectations, often carrying a negative connotation.

Stress response

The body's reaction to a challenge or demand, often initiating physiological and psychological adjustments.

Sympathetic nervous system

Part of the autonomic nervous system that activates the fight or flight response during perceived threats.

Exhaustion stage

The final phase in the general adaptation syndrome, marked by the body's inability to continue adaptation to stress, leading to potential burnout or health issues.