If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in

A profit-maximizing firm would

a. consider opportunity costs rather than accounting costs when making decisions about output. b. expand current output if the revenues expected from doing so were less than the expected costs. c. enlarge its current plant size if present depreciation costs were less than average variable costs. d. increase output in the next period if accounting profits during the previous period were positive.

If the average-total-cost of producing five units is $10, and the marginal-cost of producing the fifth unit is $10, then the average-total-cost curve is at its minimum at five units

a. True b. False Indicate whether the statement is true or false