FIGURE 8-2 -Refer to Figure 8-2.In the long run,the lowest-cost level of output achievable by this firm is A)Q₁. B)Q₂. C)Q₃. D)not shown in the diagram

Question

Quizplus · Accepted Answer

The lowest-cost level of output achievable by this firm is where the long-run average cost curve (LRAC) is tangent to the demand curve (D). In this diagram, that occurs at a quantity of Q₃, where the LRAC curve is labeled "minimum efficient scale." Therefore, choice C is the correct answer.

FIGURE 8-2 -Refer to Figure 8-2.In the Long Run,the Lowest-Cost Level of Level