Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a firm is producing where its SMC = price and the LMC is less that LAC, then it would do better in the long

If a firm is producing where its SMC = price and the LMC is less that LAC, then it would do better in the long run by a. increasing output with its existing plant until LMC equals price. b. increasing plant size until LMC and SMC are identical and equal to price. c. decreasing plant size until LAC, SAC, and price are equal. d. doing nothing because it is already at the long-run profit maximizing point

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started