Figure 13-8
The figure below depicts average total cost functions for a firm that produces automobiles.

-Refer to Figure 13-8.Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

Question

Figure 13-8
The figure below depicts average total cost functions for a firm that produces automobiles.
 
-Refer to Figure 13-8.Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

Quizplus · Accepted Answer

The smallest factory is likely to have the highest average total cost in the short run due to less efficient use of resources and lower economies of scale, which is typically represented by the highest curve, ATCA.

Figure 13-8 the Figure Below Depicts Average Total Cost Functions for a for a Firm