(Solved): 6. Long-run cost relationships The following graph shows the short-run average total cost curves an ...

6. Long-run cost relationships The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Qi marks the point of tangency between ATC) and LRATC. The orange point on ATCs indicates the firm's current output level in the short run (Qs). COST PER UNIT ATC, LRATO ATC? ATC? OUTPUT ATC ATC 06 In the long run, if the firm decides to keep output at its initial level, what will it likely do? Aplia Homework: Production and Cost in the Firm COST In the long run, if the firm decides to keep output at its initial level, what will it likely do? Shift to operate on ATC? Shift to operate on ATCS Shut down Stay on ATCS At which output level (or range of output levels) is this firm producing at the minimum efficient scale? 0 to ? ? ? ? ? OUTPUT Q? to Q4 0? Ganda Jan