Answer to Question #103607 in Microeconomics for Anurag Malhotra

Question

Describe with the help of a diagram interaction between the Short-run Average Total
Cost curves and the Long-run Average Total Cost curve given that the firm has five
plant sizes to consider viz. I, II, III, IV and V (in ascending order of their size),
wherein plant size III turn out to be optimal plant size in the long run.

Answer 1

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