The Figure Given Below Shows Three Short Run Average Total

question 73

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 21.3 Refer to the Figure 21.3.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:

Disbanded

The process or action of dissolving a group or organization, causing it to cease to exist as a structured entity.

Cognitive Dissonance Theory

A theory suggesting that individuals experience psychological discomfort or dissonance when they hold two or more contradictory beliefs, ideas, or values simultaneously.

Criticism

The act of expressing disapproval or pointing out the faults in someone or something.

Perceived Value

The worth or importance a consumer assigns to a product, service, or brand, based on how well it is believed to meet needs and expectations.