Figure 13-17 -Refer to Figure 13-17. in the Long Run, Why Will

question 223

Multiple Choice

Figure 13-17
-Refer to Figure 13-17. In the long run, why will the firm produce Q_f units and not Q_g units, which has a lower its average cost of production?

• A) Although its average cost of production is lower when the firm produces Q_g units, to be able to sell its output the firm will have to charge a price below average cost, resulting in a loss.
• B) At Q_g, average cost exceeds marginal cost so the firm will actually make a loss.
• C) At Q_g, marginal revenue is less than average revenue which will result in a loss for the firm.
• D) The firm's goal is to charge a high price and make a small profit rather than a low price and no profit.

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Definitions:

Treatment

The application of remedies to relieve or cure a disease, disorder, or injury.

Rumination

The process of continuously thinking about the same thoughts, which are often sad or dark, leading to emotional distress.

Perceived Problems

Issues or challenges that are subjectively recognized and experienced by individuals, which may vary significantly from person to person.

Overthink

The act of thinking about something too much or for too long, often leading to unnecessary worry or anxiety.