The diagram illustrates the average revenue (AR) and average cost (AC) curves for a firm X producing electronic goods. Firm X then takes over firm Y, which provides its component parts and therefore makes them cheaper. The initial average revenue and average cost curves for firm X are AR1 and AC1. After the takeover, where are the average cost curve and the average revenue curve located?
- AAC1 / AR3
- BAC2 / AR1
- CAC2 / AR3
- DAC3 / AR2