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(Figure: Long-Run and Short-Run Average Cost Curves)Use Figure: Long-Run and Short-Run

Question 141

Multiple Choice

(Figure: Long-Run and Short-Run Average Cost Curves) Use Figure: Long-Run and Short-Run Average Cost Curves.If a firm is producing at point C on the ATC2 but anticipates increasing output to 225,000 units in the long run,the firm will build a _____ plant and have _____ of scale.


A) smaller;economies
B) smaller;diseconomies
C) bigger;economies
D) bigger;diseconomies

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