Exhibit 7-17 Long-run average cost curve
-If the firm represented in Exhibit 7-17 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:

Question

Exhibit 7-17 Long-run average cost curve 
-If the firm represented in Exhibit 7-17 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:

Quizplus · Accepted Answer

The correct answer is A because the level of output that would minimize the firm's short-run average total cost is Q1 units per week, which is the point where the short-run average total cost curve A is at its minimum.

Exhibit 7-17 Long-Run Average Cost Curve