Use the following to answer questions:
Figure: Long-Run and Short-Run Average Cost Curves
-(Figure: Long-Run and Short-Run Average Cost Curves) Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm faced the long-run average total cost curve shown in the figure and it expected to produce 100,000 units of the good in the long run, the firm should build the plant associated with:

Question

Use the following to answer questions:
Figure: Long-Run and Short-Run Average Cost Curves

-(Figure: Long-Run and Short-Run Average Cost Curves) Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm faced the long-run average total cost curve shown in the figure and it expected to produce 100,000 units of the good in the long run, the firm should build the plant associated with:

Quizplus · Accepted Answer

The firm should build the plant associated with ATC₂ because it is the lowest point on the long-run average total cost curve for producing 100,000 units, indicating the most cost-efficient option.

Use the Following to Answer Questions