Graph 13-4 This Graph Depicts Average Total Cost Functions for Functions

question 35

Multiple Choice

Graph 13-4
This graph depicts average total cost functions for a firm that produces automobiles. Use the graph to answer the following question(s) .
-Refer to Graph 13-4. If the firm is currently operating on ATC_B, what options does it have if it wants to change its level of automobile production over the next couple of weeks?

• A) The firm has no options. It cannot change output level in the short run.
• B) it can operate at any level of output between points M and N
• C) it can operate at any level of output, as long as it stays on ATC_D
• D) it can operate at any level of output as long as it stays on ATC_B

---

Definitions:

Scientific Management

A management theory that examines and integrates work processes to enhance economic effectiveness and particularly boost labor productivity.

Geographic Region

A specific area defined by physical location, cultural identity, or administrative boundaries.

Motivator-Hygiene Theory

A theory proposed by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from two different sets of factors - motivation factors and hygiene factors.

Job Satisfaction

The level of contentment employees feel about their job, including aspects such as the nature of the work, conditions, pay, and recognition.