Figure 611 Figure 6

Figure 6.11 Figure 6.11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATC_a, ATC_b, and ATC_c.
-Refer to Figure 6.11.For output rates greater than 20 000 picture frames per month,__________.

A) the firm will not make a profit because the average cost of production will be too high
B) the firm will experience diseconomies of scale
C) the firm will experience diminishing returns
D) the short-run average total cost will equal the long-run average total cost of production

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