Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the

Question:

Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the accompanying figure.

What plant size will the firm choose in producing?

(a) 50,

(b) 130,

(d) 250 units of output?

Draw the firm’s long-run average-cost curve on the diagram and describe this curve.

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:45 AM

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Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the

Question:

ATC АТСЗ ATC2 АТС, 80 150 240

Step by Step Answer:

a To produce 50 units the firm will choose plant size 1 since its ATC is lower for t...View the full answer

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