(Figure: Long-Run and Short-Run Average Total Cost Curves) in the Figure

question 15

Multiple Choice

(Figure: Long-Run and Short-Run Average Total Cost Curves) In the figure, which average total cost (ATC) would a firm typically choose in order to maximize profit when it is expecting output to remain low?

• A) ATC₁
• B) ATC₂
• C) ATC₃
• D) ATC₄

---

Definitions:

Auction Site

A website where goods or services are sold to the highest bidder through a competitive bidding process.

Showrooming

The practice where shoppers visit a store to examine a product before purchasing it online at a lower price.

U.S. Online Shoppers

Individuals in the United States who purchase goods or services over the Internet.

Showrooming

The practice of visiting a store or showroom to examine a product before buying it online at a lower price.