Use the long$-$run average total cost $($LRATC$)$ curve to answer

the questions.

Cost

$$10-$

$9$

$8$

As the firm moves from Point A toward Point B$,$ it

is experiencing

constant returns to scale.

increasing returns to scale.

decreasing returns to scale.

$7$

$6$

$5$

A

$4$

$3$

B

C

LRATC

$2$

$1$

As the firm moves from Point B toward Point C$,$ it

is experiencing

decreasing returns to scale.

increasing returns to scale.

constant returns to scale.

$0$

$1$

$2$

$3$

$4567$

As the firm moves from Point C toward Point D$,$ it

is experiencing

increasing returns to scale.

constant returns to scale.

decreasing returns to scale.