The Figure Given Below Shows Three Short Run Average Total

question 90

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm. Figure 21.3 Which of the following would account for the shape of the long-run average-total-cost curve in Figure 21.3?

• A)Low worker morale
• B)Low productivity
• C)Administration overhead
• D)Specialization of labor
• E)Managerial problems

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Definitions:

Efficient Joint Production

Efficient joint production occurs when a firm or economy can produce multiple products at the lowest possible cost, maximizing the use of inputs to achieve optimal output levels.

Downward-Sloping Demand

The economic concept that, all else being equal, as the price of a good decreases, consumer demand for that good will increase.

Public Ownership

The ownership of assets by the government or the entire community rather than by private individuals or corporations.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.