Homework Help is Here – Start Your Trial Now!
Business
Economics
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 ATC, indicates the firm's current output level in the short run (Q4). 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 ATC, but decrease to the point touching LRATC O Shift to operate on ATC O Shift to operate on ATC2 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 ATC, indicates the firm's current output level in the short run (Q4). 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 ATC, but decrease to the point touching LRATC O Shift to operate on ATC O Shift to operate on ATC2 COST PER UNIT

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

please answer both of the questions

thank you! =)

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
Transcribed Image Text: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
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
Transcribed Image Text: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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Nash Equilibrium
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS