-Refer to the graph above.If the firm initially planned to produce 300 units and now desires to expand its output to 600 units,in the short run it will use the plant size represented by
A) SATC1.
B) SATC2.
C) SATC3.
D) SATC4.
E) SATC1 and SATC2.

Question

-Refer to the graph above.If the firm initially planned to produce 300 units and now desires to expand its output to 600 units,in the short run it will use the plant size represented by
A) SATC1. 
B) SATC2. 
C) SATC3. 
D) SATC4. 
E) SATC1 and SATC2.

Quizplus · Accepted Answer

SATC1 is the plant size that is currently being used by the firm. In the short run, the firm will use the same plant size to expand its output to 600 units.

-Refer to the Graph Above