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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
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