Figure 13-10

-Refer to Figure 13-10.The three average total cost curves on the diagram labeled ATC₁,ATC₂,and ATC₃ most likely correspond to three different
A) time horizons.
B) products.
C) firms.
D) factory sizes.

Question

Figure 13-10
 
-Refer to Figure 13-10.The three average total cost curves on the diagram labeled ATC₁,ATC₂,and ATC₃ most likely correspond to three different
A) time horizons. 
B) products. 
C) firms. 
D) factory sizes.

Quizplus · Accepted Answer

The three average total cost curves likely correspond to different factory sizes because each curve represents a different scale of production, which affects the average total cost.

Figure 13-10 -Refer to Figure 13-10.The Three Average Total Cost Curves on Total