Refer to Figure 11-11. If the firm chooses to produce and sell 25,000 frames per month by operating in the short run with a scale operation represented by ATCc
A) the firm would lower its average costs by reducing its scale of operation.
B) the firm will not be able to earn a profit.
C) the firm will be operating efficiently.
D) the firm will not be operating efficiently.
C
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Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then the Federal Reserve engages in monetary policy actions that reverse the changes in income and output caused by fiscal policy action. Which of the following sets of changes in taxes, government spending, the required reserve ratio, and the discount rate is most consistent with these policies?
(a) Increase / Increase / Decrease / Increase (b) Increase / Decrease / Decrease / no change (c) Increase / Decrease / Increase / Decrease (d) Decrease / Increase / no change / Increase (e) Increase / Decrease / Decrease / Increase
If the equilibrium price of an airline ticket is $500 and the government imposes a price floor of $400 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium
a. True b. False Indicate whether the statement is true or false