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.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
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
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