The graph shows the demand curve for cars in 2017. Suppose that the least-possible cost of producing a car is $10,000 and that the efficient scale is 10,000 cars a month. Draw the average total cost curve for a car manufacturer in 2017. Label it. The graph shows that the market for cars is a natural oligopoly with O A. 1 firm B. 2 firms C. 3 firms O D. 4 firms

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The graph shows the demand curve for cars in 2017.
Suppose that the least-possible cost of producing a car is $10,000 and that the efficient scale is 10,000 cars a month.
Draw the average total cost curve for a car manufacturer in 2017. Label it.
The graph shows that the market for cars is a natural oligopoly with
O A. 1 firm
OB. 2 firms
OC. 3 firms
OD. 4 firms
50,000-
40,000-
30,000-
20,000-
10,000-
0-
Price (dollars per car)
0
D
30
Quantity (thousands of cars per month)
>>> Draw only the objects specified in the question.
50
Q
Transcribed Image Text:The graph shows the demand curve for cars in 2017. Suppose that the least-possible cost of producing a car is $10,000 and that the efficient scale is 10,000 cars a month. Draw the average total cost curve for a car manufacturer in 2017. Label it. The graph shows that the market for cars is a natural oligopoly with O A. 1 firm OB. 2 firms OC. 3 firms OD. 4 firms 50,000- 40,000- 30,000- 20,000- 10,000- 0- Price (dollars per car) 0 D 30 Quantity (thousands of cars per month) >>> Draw only the objects specified in the question. 50 Q
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