Figure 8-5 -Refer to Figure 8-5.Suppose for the Past 8 Years the 8

question 63

Multiple Choice

Figure 8-5
-Refer to Figure 8-5.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:

Valid Probability

A valid probability is a numerical value that accurately represents the chance of a specific event occurring, adhering to the probability rules (ranging from 0 to 1).

Even-numbered Roll

In probability, a term referring to the outcome of rolling a die where the result is an even number (e.g., 2, 4, or 6).

Perfectly Fair

A term typically used in the context of games or algorithms to describe a condition where all participants have an equal chance of winning or an outcome is unbiased.

10-sided Die

A polyhedral die with ten flat faces, typically used in board games, role-playing games, and probability exercises.