Use the figure below to answer the following questions.

Figure 11.4.2
-Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which curve represents the average total cost for the largest of the four plant sizes?
A)ATC A
B)ATC B
C)ATC C
D)ATC D
E)either ATC C or ATC D

Question

Use the figure below to answer the following questions.
  
Figure 11.4.2
-Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which curve represents the average total cost for the largest of the four plant sizes?
A)ATC A 
B)ATC B 
C)ATC C 
D)ATC D 
E)either ATC C or ATC D

Quizplus · Accepted Answer

Curve ATCS1U1B1D represents the average total cost for the largest of the four plant sizes because it has the lowest point on the curve, indicating the lowest average cost per unit of output, and it intersects the y-axis at a higher point, indicating the presence of fixed costs for a larger plant size.

Use the Figure Below to Answer the Following Questions