Refer to the above graph to answer this question. If the price of the product is P1, what does the graph suggest? Select one: O a. The firm is producing the optimal output and is also operating from the optimal size plant. O b. The firm is neither operating from the optimal size plant nor necessarily producing the optimal output. O C. The firm is producing the optimal output but is not necessarily operating from the optimal size plant. d. The firm is operating from the optimal size plant but is not necessarily producing the optimal output.

Refer to the above graph to answer this question. If the price of the product is P1, what does the graph suggest? Select one: O a. The firm is producing the optimal output and is also operating from the optimal size plant. O b. The firm is neither operating from the optimal size plant nor necessarily producing the optimal output. O C. The firm is producing the optimal output but is not necessarily operating from the optimal size plant. d. The firm is operating from the optimal size plant but is not necessarily producing the optimal output.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.8P

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