Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 13-9. In the long run, the firm can operate on which of the following average total cost curves?
A) ATCA
B) ATCB
C) ATCC
D) All of the above are correct.

Question

Figure 13-9
The figure below depicts average total cost functions for a firm that produces automobiles. 
-Refer to Figure 13-9. In the long run, the firm can operate on which of the following average total cost curves?
A) ATCA 
B) ATCB 
C) ATCC 
D) All of the above are correct.

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs and choose the scale of operation that minimizes costs, allowing them to operate on any of the average total cost curves depending on the level of output they choose.

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