If the U-shaped ATC curve is flattened out at its lowest point(s),we would have

Question

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A flattened U-shaped ATC (Average Total Cost) curve at its lowest point indicates that the firm is experiencing proportional returns to scale, meaning that increasing the quantity of inputs leads to a proportional increase in output. This is a situation where the firm's costs per unit of output remain constant as the scale of production increases.

If the U-Shaped ATC Curve Is Flattened Out at Its