(Figure: Capital and Labor III) Suppose the Firm Is Producing

(Figure: Capital and Labor III) Suppose the firm is producing at point Z and wants to reduce its output to Q₁. Which of the following statements is TRUE?

A) In the short run, the firm will move to point A, where total costs of production are higher than at point C.
B) The firm will move along its long-run expansion path from point Z to point A.
C) In the short run, the firm will move to point A, where total costs of production are lower than at point C.
D) In the long run, the firm will move to point A, where total costs of production are lower than at point C.