. The values for the long-run Average Total Cost (ATC) curves of three different
ID: 1180040 • Letter: #
Question
.The values for the long-run Average Total Cost (ATC) curves of three different firms are listed in the table below.
Quantity
ATC 1
ATC 2
ATC 3
5
10
7
12
10
8
6
9
15
7
5
7
20
6
6
6
25
6
7
5
30
6
9
4
35
7
13
6
40
8
17
9
(a) Which firm faces the lowest minimum ATC?
Quantity
ATC 1
ATC 2
ATC 3
5
10
7
12
10
8
6
9
15
7
5
7
20
6
6
6
25
6
7
5
30
6
9
4
35
7
13
6
40
8
17
9
Explanation / Answer
a. firm 3 faces the lowest minimum ATC
b. Firm 2 faces the greatest minium efficient scale
c. firm a has the smallest economies of scale..
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