Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?
A) ATCA
B) ATCB
C) ATCC
D) ATCD

Question

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?
A) ATCA 
B) ATCB 
C) ATCC 
D) ATCD

Quizplus · Accepted Answer

The short-run average total cost curve of the smallest factory is typically the one with the highest costs at lower levels of output, which is usually the leftmost curve on a graph.

Figure 13-9 the Figure Below Depicts Average Total Cost Functions for a for a Firm