Graph 13-6 This Graph Depicts Average Total Cost Functions for Functions

question 147

Multiple Choice

Graph 13-6
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 13-6. This firm experiences economies of scale at which output levels?

• A) output levels above N
• B) output levels between M and N
• C) output levels below M
• D) all of the above levels if the firm is operating in the long run