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Question 137

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Figure 7.11 Figure 7.11 Figure 7.11 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> and ATC<sub>c</sub>. -Refer to Figure 7.11.At what rate of output is the minimum efficient scale of output reached? A) 10000 workers B) 5000 picture frames C) 20000 picture frames D) 10000 picture frames Figure 7.11 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 7.11.At what rate of output is the minimum efficient scale of output reached?


A) 10000 workers
B) 5000 picture frames
C) 20000 picture frames
D) 10000 picture frames

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