-In Figure 21.4,a firm that produces between 600 and 800 units per period should choose a plant with a short-run average total cost function of

Name: -In Figure 21.4,a firm that produces between 600 and 800 units per period should choose a plant with a short-run average total cost function of
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

The firm should choose the plant with the lowest short-run average total cost (ATC) for the given output range. If ATC2 is the lowest between 600 and 800 units, it is the optimal choice.