Refer to Figure 8.6, which shows just three of a firm's various possible short-run average cost curves. Suppose the firm is currently producing 160 units at an average cost of $90 per unit. Which of the following statements is true?
A. The firm could reduce its short-run average cost by producing more output.
B. The firm could reduce its short-run average cost by producing less output.
C. The firm is producing the level of output that minimizes short-run average cost.
D. The firm is producing its output at the lowest possible long-run average cost.
B. The firm could reduce its short-run average cost by producing less output.
Economics
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