Which of the following statements is generally correct? * O The long-run average total cost curve is U-shaped. Firms tend to experience economies of scale at high levels of output and diseconomies of scale at low levels of output. O Fixed costs are the greatest in the long run. The ATC of producing a particular quantity of output is the same in the short run and in the long run. O The short-run ATC curve intersects the long-run ATC curve at its minimum point.

Which of the following statements is generally correct? * O The long-run average total cost curve is U-shaped. Firms tend to experience economies of scale at high levels of output and diseconomies of scale at low levels of output. O Fixed costs are the greatest in the long run. The ATC of producing a particular quantity of output is the same in the short run and in the long run. O The short-run ATC curve intersects the long-run ATC curve at its minimum point.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 20P

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Question

Which of the following statements is generally correct? *
The long-run average total cost curve is U-shaped.
Firms tend to experience economies of scale at high levels of output and
diseconomies of scale at low levels of output.
O Fixed costs are the greatest in the long run.
The ATC of producing a particular quantity of output is the same in the short run and
in the long run.
O The short-run ATC curve intersects the long-run ATC curve at its minimum point.

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