Solved

If a Competitive Firm Is Producing to the Left of the Minimum

Question 138

Multiple Choice

If a competitive firm is producing to the left of the minimum point of its long-run average cost curve,then


A) it cannot be producing its present output efficiently.
B) it can reduce its unit costs by building a larger plant.
C) it can still be in long-run equilibrium as long as P = SRATC.
D) its profits will decrease if it builds a larger plant.
E) it should shut down.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents