Figure 11-10 -Refer to Figure 11-10.Suppose for the Past 8 Years the 8

question 164

Multiple Choice

Figure 11-10
-Refer to Figure 11-10.Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4.Now,following a permanent change in demand,it plans to cut production to Qc units.What will happen to its average cost of production?

• A)In the short run,its average cost falls from $47 to $41,and in the long run,average cost falls even further to $37.
• B)In the short run,its average cost rises from $47 to $55,and in the long run,average cost falls to $41.
• C)In the short run,its average cost falls from $47 to $37,and in the long run,average cost rises to $41.
• D)In the short run,its average cost rises from $47 to $55,and in the long run,average cost falls to $37.

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Definitions:

Narrowcasting

The dissemination of information to a niche audience, as opposed to broadcasting to a wide audience.

Regional Music Festival

An event that features live musical performances, typically focusing on a specific genre or themes, and aimed at attracting attendees from a particular geographic region.

Outdoor Advertising

Advertising that reaches consumers while they are outside their homes, such as billboards, transit posters, and digital outdoor displays.

Cheapest Form

The most cost-effective variant or method of obtaining or producing a good or service without compromising its essential qualities.