The figure to the right illustrates the longrun average cost curve for a firm that produces picture frames. The graph also includes shortrun average cost curves for three firm$$ sizes: ATCa$,$ ATCb and ATCc.

For output rates greater than$20,000$ picture frames per month

A$.$

the firm will experience diminishing returns.

B$.$

the shortrun average total cost will equal the longrun average total cost of production.

C$.$

the firm will not make a profit because the average cost of production will be too high.

D$.$

the firm will experience diseconomies of scale.