Refer to the Provided Graphs

question 154

Multiple Choice

Refer to the provided graphs. They show the long-run average total cost (LRATC) for cars. Just after World War II, the Ford Motor Company opened a large automobile manufacturing facility near Detroit with capacity Q ₀ autos per year. Shortly thereafter, the plant was closed and two smaller ones were opened in the same vicinity, each more profitably producing about one-half as many cars as the old facility. Which graph best shows the situation just described, when only one plant was operating?

• A)graph A
• B)graph B
• C)graph C
• D)graph D

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Definitions:

Paying Bills

The process of settling financial obligations for services or products received, often on a regular basis.

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The act of purchasing food and other household necessities from a supermarket or grocery store.

Genetic-Programming Theories

Theories suggesting that aspects of human behavior and characteristics may be predetermined by genetic information.

Detail

An individual feature, fact, or item that is part of a larger entity.