Suppose the Government Restricts the Amount of Capital Equipment Firms

Multiple Choice

Suppose the government restricts the amount of capital equipment firms can purchase in an attempt to increase employment.If a firm expands output then its long-run average costs will be:

A) less than they would be without the restriction.
B) more than they would be without the restriction.
C) the same as they would be without the restriction.
D) uncertain.Need more information