Question: Suppose a watch firm faces the short-run average total cost curves and the long-run average total cost curve that envelops them, shown here. Which short

Suppose a watch firm faces the short-run average total cost curves and the long-run average total cost curve that envelops them, shown here. Which short run average total cost structure would it choose if it plans to produce 100 watches? 400 watches? Explain.

SHORT RUN AVERAGE TOTAL COST CURVES COST CURVE 100 400 QUANTITY

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