Figure 12-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 12-9.Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory?

Question

Figure 12-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 12-9.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 due to less efficient production, so ATC_A would represent the smallest factory's short-run average total cost curve.

Figure 12-9 the Figure Below Depicts Average Total Cost Functions for a for a Firm