Figure: Long-Run and Short-Run Average Cost Curves (Figure:Long-Run and Short-Run Average Cost Curves ) Look at the 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 _.
A)smaller; economies of scale
B)smaller; diseconomies of scale
C)bigger; economies of scale
D)bigger; diseconomies of scale

Question

Figure: Long-Run and Short-Run Average Cost Curves   (Figure:Long-Run and Short-Run Average Cost Curves ) Look at the 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 _.
A)smaller; economies of scale 
B)smaller; diseconomies of scale 
C)bigger; economies of scale 
D)bigger; diseconomies of scale

Quizplus · Accepted Answer

The Answer of Figure: Long-Run and Short-Run Average Cost Curves   (Figure:Long-Run and Short-Run Average Cost Curves ) Look at the 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 _.
A)smaller; economies of scale 
B)smaller; diseconomies of scale 
C)bigger; economies of scale 
D)bigger; diseconomies of scale