Figure 10.14 -Refer to Figure 10.14.If the Diagram Represents a Typical Firm

Multiple Choice

Figure 10.14
-Refer to Figure 10.14.If the diagram represents a typical firm in the market, what is likely to happen to its average cost of production in the long run?

A) It will probably fall since the firm must be cost efficient to remain competitive.
B) It will probably fall since the firm will be selling less than its current amount.
C) It will probably rise since the firm will be producing less than its current amount.
D) It will probably rise since its long-run demand is likely to be higher.