Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 7 - Businesses and the Costs of Production - Quick Quiz for Figure 7.8 - Page 154: 2

Answer

b. increasing, then decreasing, short-run returns.

Work Step by Step

As ATC decrease, return increase and vice-versa. Hence, the unlabeled red curves in this figure derive their shapes from increasing, then decreasing, short-run returns.
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