A firm is producing output less than the output associated with the minimum point on the firm's short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input ________.
A. at a level higher than the lowest average cost; at a level higher than the lowest average cost
B. at the lowest average cost; at the lowest average cost
C. at the lowest average cost; at a level higher than the lowest average cost
D. at a level higher than the lowest average cost; at the lowest average cost
Answer: A
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