-The average total cost curves for plants A, B, C, and D are shown in the above figure. The plant size that is the most economically efficient
A) is plant A.
B) is plant B.
C) is plant C.
D) depends on the desired level of output.

Question

-The average total cost curves for plants A, B, C, and D are shown in the above figure. The plant size that is the most economically efficient
A) is plant A. 
B) is plant B. 
C) is plant C. 
D) depends on the desired level of output.

Quizplus · Accepted Answer

The most economically efficient plant size depends on the desired level of output because different plant sizes may have different average total costs at different levels of production.

-The Average Total Cost Curves for Plants A, B, C