Figure 13-5
This figure depicts average total cost functions for a firm that produces automobiles.

-Refer to Figure 13-5.Which of the curves is most likely to characterize the short-run average-total-cost curve of the smallest factory

Question

Figure 13-5
This figure depicts average total cost functions for a firm that produces automobiles.
Figure 13-5 This figure depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-5.Which of the curves is most likely to characterize the short-run average-total-cost curve of the smallest factory A) ATCA B) ATCB C) ATCC D) ATCD

Figure 13-5 This figure depicts average total cost functions for a firm that produces automobiles. -Refer to Figure 13-5.Which of the curves is most likely to characterize the short-run average-total-cost curve of the smallest factory A) ATC<sub>A</sub> B) ATC<sub>B</sub> C) ATC<sub>C</sub> D) ATC<sub>D</sub>

-Refer to Figure 13-5.Which of the curves is most likely to characterize the short-run average-total-cost curve of the smallest factory

Quizplus · Accepted Answer

The curve ATC_A represents the smallest factory, as it has the lowest minimum efficient scale. In the short run, the firm operates within this minimum efficient scale, and thus this curve represents the short-run average-total-cost curve of the smallest factory.

Figure 13-5 This Figure Depicts Average Total Cost Functions for a Firm