Figure 12-9 the Figure Below Depicts Average Total Cost Functions for a for a Firm

question 259

Multiple Choice

Figure 12-9
The figure below depicts average total cost functions for a firm that produces automobiles.
-Refer to Figure 12-9.At levels of output less than M,the firm experiences

• A) economies of scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) both diminishing marginal productivity and coordination problems.

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