Graph 13-4
This graph depicts average total cost functions for a firm that produces automobiles. Use the graph to answer the following question(s).
-Refer to Graph 13-4. Which of the curves is most likely to characterise the short-run average total cost curve of the biggest factory?

Question

Graph 13-4
  This graph depicts average total cost functions for a firm that produces automobiles. Use the graph to answer the following question(s).
-Refer to Graph 13-4. Which of the curves is most likely to characterise the short-run average total cost curve of the biggest factory?

Quizplus · Accepted Answer

The curve ATC_C has the lowest average total cost for production levels between 200,000 and 300,000 automobiles, indicating that it is the most efficient production level for this firm in the short run. The other curves have higher costs at this level of production.

Graph 13-4 This Graph Depicts Average Total Cost Functions for Functions