The Figure Given Below Shows Three Short Run Average Total

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 8.3

-If a firm experiences constant returns to scale throughout:

A) the long-run average-total-cost curve is negatively sloped.
B) the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion.
C) the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points.
D) the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion.
E) the long-run average-total-cost curve is positively sloped.

Correct Answer:

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