This figure shows the long-run average total cost curve for a firm that produces basketballs, along with four short-run average total cost curves. Each of the short-run average total cost curves corresponds to a different plant size. SRATC₁ corresponds to Plant size 1, SRATC₂ corresponds to Plant size 2, and so forth.
FIGURE 7-6

-Refer to Figure 7-6. Which plant size is optimal for the firm to produce qC units of output each week?

Question

This figure shows the long-run average total cost curve for a firm that produces basketballs, along with four short-run average total cost curves. Each of the short-run average total cost curves corresponds to a different plant size. SRATC₁ corresponds to Plant size 1, SRATC₂ corresponds to Plant size 2, and so forth.
FIGURE 7-6
 
-Refer to Figure 7-6. Which plant size is optimal for the firm to produce qC units of output each week?

Quizplus · Accepted Answer

The Answer of This figure shows the long-run average total cost curve for a firm that produces basketballs, along with four short-run average total cost curves. Each of the short-run average total cost curves corresponds to a different plant size. SRATC₁ corresponds to Plant size 1, SRATC₂ corresponds to Plant size 2, and so forth.
FIGURE 7-6
 
-Refer to Figure 7-6. Which plant size is optimal for the firm to produce qC units of output each week?

This Figure Shows the Long-Run Average Total Cost Curve for a Firm