Chapter 56, Problem 2FRQ

To determine

A graph that shows a short-run average total cost curve and the corresponding long-run average total cost curve by identifying the areas of economies and diseconomies of scale.

Explanation of Solution

  

Graph shows a short-run average total cost curve and the corresponding long-run average total cost curve long with the areas of economies and diseconomies of scale.

Economics Concept Introduction

Introduction: Economies of scale is a situation when a firm produce more goods by using fewer input resources or costs.

Average total cost is determined by dividing the total cost to quantity.