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a. diseconomies of scale. b. constant returns to scale. c. both diminishing marginal productivity and coor d. economies of scale.

a. diseconomies of scale. b. constant returns to scale. c. both diminishing marginal productivity and coor d. economies of scale.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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Figure 13-6 The following figure depicts average total cost functions for a firm that produces automobiles. AVERAGE TOTAL COST (Dollars per automobile) ATC₂ ATC ATC₂ M Refer to Figure 13-6. At levels of output less than M, the firm experiences a. diseconomies of scale. Ob. constant returns to scale. c. both diminishing marginal productivity and coordination problems. d. economies of scale. N ATC QUANTITY (Automobiles per day)
Transcribed Image Text:Figure 13-6 The following figure depicts average total cost functions for a firm that produces automobiles. AVERAGE TOTAL COST (Dollars per automobile) ATC₂ ATC ATC₂ M Refer to Figure 13-6. At levels of output less than M, the firm experiences a. diseconomies of scale. Ob. constant returns to scale. c. both diminishing marginal productivity and coordination problems. d. economies of scale. N ATC QUANTITY (Automobiles per day)
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