Figure 9.12
-Refer to Figure 9.12.The diagram depicts a firm ________.

Name: Figure 9.12 -Refer to Figure 9.12.The diagram depicts a firm ________.
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Question

Figure 9.12 
-Refer to Figure 9.12.The diagram depicts a firm ________.

Quizplus · Accepted Answer

The diagram shows that the firm is operating at the minimum of its long-run average cost curve, which indicates that it is producing at the most efficient scale and is in long-run equilibrium. There is no indication of short-run losses or industry-wide cost changes, so options A and B can be eliminated.

Figure 9.12 -Refer to Figure 9.12.The Diagram Depicts a Firm ________