-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's Plant 2 will be economically efficient if the firm produces _______ copies per day.
A) 2,000
B) 4,800
C) 6,000
D) 5,300

Question

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's Plant 2 will be economically efficient if the firm produces _______ copies per day.
A) 2,000 
B) 4,800 
C) 6,000 
D) 5,300

Quizplus · Accepted Answer

Plant 2 will be economically efficient at the quantity where its ATC curve is at its lowest point, which corresponds to 4,800 copies per day.

-Dustin's Copy Shop Can Use Four Alternative Plants