Figure 711 Figure 7

Multiple Choice

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_a, ATC_b and ATC_c.
-Refer to Figure 7.11.Constant returns to scale

A) occur for output rates greater than 5000 picture frames.
B) occur between 5000 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.