If the Average Total Cost of Supplying a Good Exceeds

Multiple Choice

If the average total cost of supplying a good exceeds the price at which the good can be sold, then entrepreneurs have:

A) an incentive to supply the good.
B) no incentive to supply the good.
C) an incentive to supply only a small amount of the good.
D) an incentive to raise the average total cost of producing the good.