Unformatted text preview: So long as fixed and indivisible factors are not used to their fullest capacity (C1C2) the ATC keeps on falling. Once the fixed capacity is fully utilized the ATC reaches a minimum point (C2). This is the point of optimum utilization of fixed factors . If the output continues to increase beyond this point the fixed factors get over utilized and cause ATC to rise....
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- Fall '10
- Economics, Causality, Capacity utilization