A study of actual business people showed that most believe their ATC curve is declining until production capacity is reached.

Question

Quizplus · Accepted Answer

Most business people believe their Average Total Cost (ATC) curve declines as they increase production, due to economies of scale, until they reach their production capacity, at which point costs may start to increase due to inefficiencies or the need for additional investment.

A Study of Actual Business People Showed That Most Believe