Refer to the information provided in Figure 9.6 below to answer the question(s) that follow.  Figure 9.6Refer to Figure 9.6. Assume this firm is in a constant-cost industry. For this firm to ________, the firm must be producing q3 units of output.

A. need to shut down
B. be in long-run equilibrium
C. be experiencing diseconomies of scale
D. need to cut back on production to lower average costs


Answer: B

Economics

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