Figure: Long-Run and Short-Run Average Cost Curves (Figure:Long-Run

question 94

Multiple Choice

Figure: Long-Run and Short-Run Average Cost Curves (Figure:Long-Run and Short-Run Average Cost Curves ) Look at the figure Long-Run and Short-Run Average Cost Curves.If a firm is producing at point C on the ATC2 but anticipates increasing output to 225,000 units in the long run, the firm will build a ________ plant and have _.

• A)smaller; economies of scale
• B)smaller; diseconomies of scale
• C)bigger; economies of scale
• D)bigger; diseconomies of scale

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Definitions:

Alsace

A historical region in eastern France, known for its strategic importance and cultural blend of French and German influences, often a point of contention between the two countries.

France and Germany

Two major European countries with a complex history of rivalry, cooperation, and influential roles in European and world affairs.

German Spoken

is a reference to the German language, which is spoken in Germany, Austria, Switzerland, and other countries as a mother tongue or foreign language.

Contentious Relations

Describes relationships, whether between individuals, groups, or nations, characterized by conflict, controversy, or rivalry, often marked by public disagreements or disputes.