Refer to Diagram D Above

Multiple Choice

Refer to diagram D above.A firm producing efficiently with an existing plant size represented by SATC2 finds that market demand has fallen drastically.In the short run,this plant must

A) continue to produce the same amount of output with plant size SATC2.
B) reduce its output while continuing to produce with plant size SATC2.
C) immediately switch to plant size SATC1.
D) switch to plant size SATC1 and reduce its output.
E) try to lower production costs by changing to a more efficient combination of inputs.