Figure 6.11 Figure 6.11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATC_a, ATC_b_, and ATC_c.
-Refer to Figure 6.11.If the firm chooses to produce and sell 25 000 frames per month by operating in the short run with a scale operation represented by ATC_c_{,_________.}

Question

Figure 6.11

Figure 6.11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATC_a, ATC_b_, and ATC_c.
-Refer to Figure 6.11.If the firm chooses to produce and sell 25 000 frames per month by operating in the short run with a scale operation represented by ATC_c_{,_________.}

Quizplus · Accepted Answer

Operating at the scale represented by ATC_c_, allows the firm to produce at the lowest average cost in the short run. Therefore, the firm is operating efficiently.

Figure 611 Figure 6