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

Multiple Choice

(Figure: Long-Run and Short-Run Average Cost Curves) Use 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 _____ of scale.

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