If the firm in the accompanying graph expanded its scale of production and found that its average costs did not change,which of the curves would reflect this situation?

Question

Quizplus · Accepted Answer

LRATC2 would reflect this situation as it represents the long-run average total cost curve for a specific scale of production. If the firm expands its scale of production and average costs remain the same, then it would still be operating at the same scale represented by LRATC2.

If the Firm in the Accompanying Graph Expanded Its Scale