Short-Run and Long-Run Average Total Cost CurvesShort-run and long-run average total cost curves differ because a firm can choose its fixed cost in the long run. If Selena has chosen the level of fixed cost that minimizes short-run average total cost at an output of 6 cases, and actually produces 6 cases, then she will be at point C on LRATC and ATC6. But if she produces only 3 cases, she will move to point B. If she expects to produce only 3 cases for a long time, in the long run she will reduce her fixed cost and move to point A on ATC3. Likewise, if she produces 9 cases (putting her at point Y) and expects to continue this for a long time, she will increase her fixed cost in the long run and move to point X.