The Figure Given Below Shows Three Short Run Average Total

question 48

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 7.3 Which of the following would account for the shape of the long-run average-total-cost curve in Figure 7.3?

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

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Definitions:

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, leading to a stable market condition.

Minimum Wage

The lowest legal wage that can be paid to most workers.

Unskilled Workers

Laborers who have limited or no special skills or training, often employed in relatively simple tasks.

Difficult Time

A period characterized by challenges, adversities, or hardships that individuals, groups, or entities face.