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In Figure 21

Question 98

Multiple Choice

In Figure 21.4, a firm that produces between 600 and 800 units per period should choose a plant with a short-run average total cost function of A) ATC<sub>2</sub> only<sub>.</sub> B) ATC<sub>1</sub> only. C) ATC<sub>3</sub> only. D) ATC<sub>2</sub> or ATC<sub>3</sub>. In Figure 21.4, a firm that produces between 600 and 800 units per period should choose a plant with a short-run average total cost function of


A) ATC2 only.
B) ATC1 only.
C) ATC3 only.
D) ATC2 or ATC3.

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