The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm. Figure 21.3
Refer to the Figure 21.3.In the long run, an increase in production from Q1 to Q3 would:
A) increase average cost by C4 - C1.
B) increase average cost by C3 - C1.
C) increase average cost by C3 - C2.
D) decrease average cost by C3 - C1.
E) decrease average cost by C3 - C2.
Correct Answer:
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