Under free entry and exit, to find the quantity where ATC is minimized, the firm can:

Name: Under free entry and exit, to find the quantity where ATC is minimized, the firm can:
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Question

Quizplus · Accepted Answer

The point where ATC is minimized is where MC intersects ATC, which corresponds to setting MC equal to ATC and solving for Q (A). Alternatively, taking the derivative of ATC with respect to Q and setting it to zero to solve for Q (B) also finds this minimum point. Both methods are valid, hence C is correct.

Under Free Entry and Exit, to Find the Quantity Where