If a Firm Decides to Make the Investment Decision to Expand

question 32

Multiple Choice

If a firm decides to make the investment decision to expand its capacity,then it must have discovered that

• A)P = ATC.
• B)P > AVC.
• C)P > ATC.
• D)P = AVC.

---

Definitions:

Cubic Polynomial

A polynomial of degree three, expressed in the form ax^3 + bx^2 + cx + d.

Quadratic Polynomial

A polynomial of degree 2, typically in the form of ax^2 + bx + c.

Scientific Notation

A way of expressing numbers that are too big or too small to be conveniently written in decimal form, using powers of ten.

Binomial

An algebraic expression of the sum or the difference of two terms.