Refer to the graph shown. A firm that produces 900 units of output using the plant size associated with SATC2 minimizes: 1-neither long-run nor short-run average total cost. 2-long-run average total cost only. 3-both long-run and short-run average total cost. 4-short-run average total cost only. Solution at this point both long run and short run average total cost will be minimize and the correct option is 3. .

1. 1- neither long-run nor short-run average total cost.
2- long-run average total cost only.
3- both long-run and short-run average total cost.
4- short-run average total cost only.
Refer to the graph shown. A firm that produces 900 units of output using the plant size
associated with SATC2 minimizes: 1-neither long-run nor short-run average total cost. 2-long-
run average total cost only. 3-both long-run and short-run average total cost. 4-short-run average
total cost only.
Solution
at this point both long run and short run average total cost will be minimize
and the correct option is 3.