Figure 12-8
-Refer to Figure 12-8.The efficient scale of production occurs at which quantity?

Name: Figure 12-8 -Refer to Figure 12-8.The efficient scale of production occurs at which quantity?
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Question

Figure 12-8 
-Refer to Figure 12-8.The efficient scale of production occurs at which quantity?

Quizplus · Accepted Answer

The efficient scale of production occurs where the long-run average cost (LRAC) is at a minimum. In this graph, LRAC is at a minimum at point C, which corresponds to a quantity of 200 units. Therefore, the best choice is C.

Figure 12-8 -Refer to Figure 12-8.The Efficient Scale of Production Occurs at Production