Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 13-9. Which curve represents the long-run average total cost?

Question

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. Which curve represents the long-run average total cost?

Quizplus · Accepted Answer

The long-run average total cost curve (ATCD) typically shows the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, reflecting economies and diseconomies of scale.

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