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Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the accompanying figure. What plant size will the firm

Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the accompanying figure. What plant size will the firm choose in producing 50, 130, 160 and 250 units?

Draw the firm's long-run average-cost curve on the diagram and describe what it represents.

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ATC ATC1 ATC, ATCI 80 150 240

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