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

Question

Quizplus · Accepted Answer

When a plant operates at the level of output where its short-run average total cost is at its minimum, it is operating at its capacity, meaning it is producing at the most efficient scale without increasing costs.

When a Plant Is Operating at the Level of Output