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Question 196

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Figure 6.11 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<sub>a</sub>, ATC<sub>b</sub><sub>,</sub> and ATC<sub>c</sub>. -Refer to Figure 6.11.Constant returns to scale __________. A) occur for output rates greater than 5 000 picture frames B) occur between 5 000 and 20 000 picture frames per month C) occur between 10 000 and 20 000 pictures frames per month D) will shift the long-run average cost curve downward 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: ATCa, ATCb, and ATCc.
-Refer to Figure 6.11.Constant returns to scale __________.


A) occur for output rates greater than 5 000 picture frames
B) occur between 5 000 and 20 000 picture frames per month
C) occur between 10 000 and 20 000 pictures frames per month
D) will shift the long-run average cost curve downward

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