Figure: Long-Run and Short-Run Average Cost Curves (Figure:Long-Run

Multiple Choice

Figure: Long-Run and Short-Run Average Cost Curves (Figure:Long-Run and Short-Run Average Cost Curves ) Look at the figure Long-Run and Short-Run Average Cost Curves.If a firm is producing at point C on the ATC2 but anticipates increasing output to 225,000 units in the long run, the firm will build a ________ plant and have _.

A) smaller; economies of scale
B) smaller; diseconomies of scale
C) bigger; economies of scale
D) bigger; diseconomies of scale