Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following graphs to answer the next question. A set of 4 graphs marked as A, B, C, and D depicting 1 curve each,

Use the following graphs to answer the next question. A set of 4 graphs marked as A, B, C, and D depicting 1 curve each, shows dollars per unit on vertical axis and cars on horizontal axis.In graph (A), a u-shaped curve, LRATC is drawn and a dotted line connects the trough of the curve to the horizontal axis at Q0. In graph (B), a decreasing curve, LRATC is drawn and a dotted line connects the trough of the curve (near the vertical axis) to the horizontal axis at Q0. In graph (C), a concave upward curve, LRATC is drawn and a dotted line connects the starting region of the curve (near the vertical axis) to the horizontal axis at Q0. In graph (D), a concave upward curve, LRATC is drawn and a dotted line connects the end region of the curve (away from the vertical axis) to the horizontal axis at Q0. The graphs show the long-run average total cost (LRATC) curve for cars. Just after World War II, the Ford Motor Company opened a large automobile manufacturing facility near Detroit with capacity Q0 autos per year. Shortly thereafter, the plant was closed and two smaller ones were opened in the same vicinity, each more profitably producing about one-half as many cars as the old facility. Which graph best shows the situation described above, when only one plant was operating? Multiple Choice Graph C Graph D Graph B Graph A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Robert Pindyck, Daniel Rubinfeld

9th Edition

0134184246, 9780134184241

More Books

Students also viewed these Economics questions

Question

Get married, do not wait for me

Answered: 1 week ago

Question

Do not pay him, wait until I come

Answered: 1 week ago

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago