Graph 13-6 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 13-6.In the long run, the firm can operate on which of the following average total cost curves?
A)ATCA
B)ATCB
C)ATCC
D)any of the above

Question

Graph 13-6  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 13-6.In the long run, the firm can operate on which of the following average total cost curves?
A)ATCA 
B)ATCB 
C)ATCC 
D)any of the above

Quizplus · Accepted Answer

In the long run, a firm can adjust all of its inputs and can choose any plant size. Therefore, it can operate on any of the average total cost curves (ATCA, ATCB, ATCC) depending on its output level and the scale of operation it chooses to adopt.

Graph 13-6 This Graph Depicts Average Total Cost Functions