Use the following to answer question 2. Figure 7.10 Capital 24 22 20 18 16 14 12 10 8 6 4 2 LLLL 22 NA 21416 8 10 12 14

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Use The Following To Answer Question 2 Figure 7 10 Capital 24 22 20 18 16 14 12 10 8 6 4 2 Llll 22 Na 21416 8 10 12 14 1 (46.93 KiB) Viewed 67 times

the correct answer is highlighted, but i don't understand why thats the correct answer. please explain
Use the following to answer question 2. Figure 7.10 Capital 24 22 20 18 16 14 12 10 8 6 4 2 LLLL 22 NA 21416 8 10 12 14 16 18 20 22 24 Labor 3 5 17 2 (Figure 7.10) Suppose the firm is producing at point Z and wants to reduce its output to Q. Which of the following statements is TRUE? (4) In the long run, the firm will move to point A, where total costs of production are lower than at point C. B) In the short run, the firm will move to point A, where total costs of production are lower than at point C. C) In the short run, the firm will move to point A, where total costs of production are higher than at point C. D) The firm will move along its long-run expansion path from point Z to point A.