LRATOATCATC,ATC,OUTPUTIn the long run, if the firm decides to keep output at its initial level, what will it likely do?O Shut downO Stay on ATC3 but decrease to the point touching LRATCO Shift to operate on ATC4O Shift to operate on ATC2At which output level (or range of output levels) can the firm produce most efficiently, given its current productive capacity?O Q3O Q2 to Q4O Q4O Q2O o to Q3COST PER UNIT The following graph shows the short-run average total cost curves for different plant sizes and the long-run average total cost curve for a publishingfirm. The five marked quantities indicate points of tangency between each short-run average total cost (ATC) curve and the long-run average totalcost (LRATC) curve; for example, Q1 marks the point of tangency between ATC, and LRATC.The orange point on ATC3 indicates the firm's current output level in the short run (Q.).ATC,ATCLRATCATCATC,ATC,OUTPUTIn the long run, if the firm decides to keep output at its initial level, what will it likely do?O Shut downO Stay on ATC3 but decrease to the point touching LRATCO Shift to operate on ATC4O Shift to operate on ATC2COST PER UNIT

Average total cost is the total cost incurred for a single unit of output out of the total output.…

Answered: ATC4 LRATO ATC ATC OUTPUT COST PER UNIT

Business

Economics

ATC4 LRATO ATC ATC OUTPUT COST PER UNIT

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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Question

100%

LRATO
ATC
ATC,
ATC,
OUTPUT
In the long run, if the firm decides to keep output at its initial level, what will it likely do?
O Shut down
O Stay on ATC3 but decrease to the point touching LRATC
O Shift to operate on ATC4
O Shift to operate on ATC2
At which output level (or range of output levels) can the firm produce most efficiently, given its current productive capacity?
O Q3
O Q2 to Q4
O Q4
O Q2
O o to Q3
COST PER UNIT

The following graph shows the short-run average total cost curves for different plant sizes and the long-run average total cost curve for a publishing
firm. The five marked quantities indicate points of tangency between each short-run average total cost (ATC) curve and the long-run average total
cost (LRATC) curve; for example, Q1 marks the point of tangency between ATC, and LRATC.
The orange point on ATC3 indicates the firm's current output level in the short run (Q.).
ATC,
ATC
LRATC
ATC
ATC,
ATC,
OUTPUT
In the long run, if the firm decides to keep output at its initial level, what will it likely do?
O Shut down
O Stay on ATC3 but decrease to the point touching LRATC
O Shift to operate on ATC4
O Shift to operate on ATC2
COST PER UNIT

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