(Figure: Long-Run and Short-Run Average Total Cost Curves)
In the figure, in general, if a firm expects to maximize profits, which average total cost (ATC) will it select? Which ATC would a firm typically choose when it is expecting to produce a larger level of output with a lot of physical capital? Which ATC would a firm typically choose when it is expecting output to remain low?

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The Answer of (Figure: Long-Run and Short-Run Average Total Cost Curves)
In the figure, in general, if a firm expects to maximize profits, which average total cost (ATC) will it select? Which ATC would a firm typically choose when it is expecting to produce a larger level of output with a lot of physical capital? Which ATC would a firm typically choose when it is expecting output to remain low?