Only answer if you are 100% sure 15. The short-run average total cost (ATC) curv

Question

Only answer if you are 100% sure 15.   The short-run average total cost (ATC) curve of a firm willtend to be U-shaped because
A.   larger firms always have lowerper-unit costs than smaller firms. B.   at low levels of output, AFC will behigh, while at high levels of output, MC will be high as the resultof diminishing returns. C.   diminishing returns will be presentwhen output is small, and high AFC will push per-unit cost to highlevels when output is large. D.   diseconomies of scale will be presentat both small and large output rates. Only answer if you are 100% sure 15.   The short-run average total cost (ATC) curve of a firm willtend to be U-shaped because 15.   The short-run average total cost (ATC) curve of a firm willtend to be U-shaped because 15.   The short-run average total cost (ATC) curve of a firm willtend to be U-shaped because

Explanation / Answer

B. al low level of output , AFC will be high, while at high levelsof output , MC will be high as the result of diminishingreturns.

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