Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 10

Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the accompanying figure. What plant size will the firm choose in producing ( a ) 50, ( b ) 130, ( c ) 160, and ( d ) 250 units of output Draw the firm's long-run average-cost curve on the diagram and describe this curve.