Refer to the information provided in Figure 12.1 below to answer the question(s) that follow. Figure 12.1
-Refer to Figure 12.1. This competitive firm is currently at Point B on the ATC curve. The firm's move toward an output where ATC will be at point A will make the economy
A) more fair and the distribution of outcome more equitable.
B) more stable.
C) less efficient.
D) less stable.

Question

Refer to the information provided in Figure 12.1 below to answer the question(s) that follow.  Figure 12.1
-Refer to Figure 12.1. This competitive firm is currently at Point B on the ATC curve. The firm's move toward an output where ATC will be at point A will make the economy
A) more fair and the distribution of outcome more equitable. 
B) more stable. 
C) less efficient. 
D) less stable.

Quizplus · Accepted Answer

Moving towards a point where ATC will be at point A will result in the firm producing at a lower level of output, which will lead to less efficiency in the economy. Therefore, the correct choice is C. The other choices are not relevant to the information provided in the question.

Refer to the Information Provided in Figure 12