Asked by Layton Bicanovsky on Jul 23, 2024
Verified
Refer to Figure 12.1. This firm is currently at Point B on the ATC curve. If this firm moves toward Point A, this will make the
A) distribution of outcome more equitable.
B) economy more stable.
C) economy more efficient.
D) economy less stable.
ATC Curve
A graphical representation of the Average Total Cost, depicting how average cost of production varies with the quantity of output produced.
Efficient
Describes a process or system that achieves maximum productivity with minimum wasted effort or expense.
Economy
The system of production, distribution, and consumption of goods and services within a particular geographical area.
- Evaluate the influence of consumer preference modifications on market stability and the efficiency of firms.
Verified Answer
LR
Lauren RodriguezJul 27, 2024
Final Answer :
C
Explanation :
Moving toward Point A on the ATC (Average Total Cost) curve implies that the firm is reducing its average total costs, which typically means it is becoming more productive or efficient in its operations. This increase in efficiency can lead to lower prices for consumers and better allocation of resources in the economy, making the economy more efficient.
Learning Objectives
- Evaluate the influence of consumer preference modifications on market stability and the efficiency of firms.