Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 13-9. Which curve represents the long-run average total cost?
A) ATCA
B) ATCB
C) ATCC
D) ATCD

Question

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. Which curve represents the long-run average total cost?
A) ATCA 
B) ATCB 
C) ATCC 
D) ATCD

Quizplus · Accepted Answer

The long-run average total cost curve (ATCD) typically shows the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, reflecting economies and diseconomies of scale.

Figure 13-9 the Figure Below Depicts Average Total Cost Functions for a for a Firm