When a plant is operating at the level of output where its short-run average total cost is at its minimum,
A)average fixed cost is at a minimum.
B)marginal cost is at a minimum.
C)average variable cost is at a minimum.
D)the plant is operating at its capacity.
E)more of the variable factor of production should be employed.

Question

Quizplus · Accepted Answer

At the minimum point of the short-run average total cost curve, the plant is operating at its most efficient level, which is often referred to as operating at capacity.

When a Plant Is Operating at the Level of Output