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.

The figure to the right illustrates the long - run ATC a ATC C average cost curve for a firm that produces picture frames. The graph also includes short - run average cost curves for three firm sizes: ATC, ATC and ATC ATCb For output rates greater than 20,000 picture frames per month Long-run O A. the firm will not make a profit because the average cost average cost of production will be too high. 5.000 10,000 15,000 20,000 25,000 O B. the firm will experience diseconomies of Quantity of picture scale. frames sold per month O C. the firm will experience diminishing returns. O D. the short - run average total cost will equal the long - run average total cost of production