The Figure Given Below Shows Three Short Run Average Total

question 53

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

-When a firm is experiencing economies of scale, it will:

• A)underuse a larger plant size than is indicated by short-run efficiency concerns.
• B)underuse a smaller plant than is indicated by short-run efficiency concerns.
• C)overuse a larger plant size than is indicated by short-run efficiency concerns.
• D)overuse a smaller plant size than is indicated by short-run efficiency concerns.
• E)produce at the minimum short-run and long-run average costs.

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Definitions:

Tort Of Negligence

Refers to a civil wrong that arises from an act or failure to act, resulting in injury or harm, stemming from a breach of duty of care owed to others.

Tort Of Trespass

A legal wrong that involves the direct, intentional or negligent unauthorized entry onto another person's property.

Neighbour's Property

Issues and laws concerning the rights and responsibilities between adjoining landowners, including boundary disputes and nuisances.

Pool

A common fund or resource created by the contribution of several individuals or entities, often for shared use or investment purposes.